📈 CHART PATTERN: CLASSIC CUP & HANDLE
Pattern Confirmation:
Cup Formation: Rounded bottom with consolidation between support (~₹834) and resistance (₹915).
Handle: Smaller pullback (bullish flag) near ₹915 resistance, validating the pattern.
Volume: Declining volume in the handle, with a breakout spike needed for confirmation.
🎯 KEY LEVELS & TRADE PLAN
🚪 Entry (Buy): ₹915 Breakout Level
🎯 Target 1: ₹957 (*+4.6%*)
🎯 Target 2: ₹1,078 (*+17.8%*)
🛑 Stop Loss: ₹834 (*-8.8% from entry*)
⚡ TRADING STRATEGY
Entry: Buy on closing price > ₹915 with rising volume.
Targets:
Take Partial Profit at ₹957 (book 50% position).
Trail SL for Remainder toward ₹1,078.
Risk-Reward Ratio:
1:2.0 (Target 2) | 1:0.5 (Target 1).
📉 RISK MANAGEMENT
Stop Loss: Strictly adhere to ₹834 (invalidates the pattern if breached).
Position Size: Risk ≤ 1-2% of capital per trade.
Volume Watch: Weak volume on breakout = false signal.
🔍 WHY THIS WORKS?
Technical Strength:
Cup & Handle is a high-probability bullish continuation pattern.
Handle retest at ₹915 shows seller exhaustion.
Historical Context:
₹834 (handle low) acts as strong support, aligning with the 50% Fibonacci retracement of prior swings.
Market Sentiment: Healthcare sector resilience adds momentum.
📊 VISUAL PRICE PATH
Current Price → ₹915 Resistance
│
├→ **Breakout Confirmed** → ₹957 → ₹1,078
│
└→ **Breakdown** → SL ₹834 (Exit)
⚠️ CRITICAL NOTES
Fundamental Catalyst: Monitor earnings/news for confirmation.
False Breakout Risk: Avoid chasing price; wait for close above ₹915.
Time Frame: Pattern validity weakens if breakout stalls for >5-7 sessions.
✅ CONCLUSION
A textbook Cup & Handle pattern with defined risk-reward makes Zota Healthcare a high-conviction long trade above ₹915. Prioritize volume confirmation and strict SL discipline.
Pattern Confirmation:
Cup Formation: Rounded bottom with consolidation between support (~₹834) and resistance (₹915).
Handle: Smaller pullback (bullish flag) near ₹915 resistance, validating the pattern.
Volume: Declining volume in the handle, with a breakout spike needed for confirmation.
🎯 KEY LEVELS & TRADE PLAN
🚪 Entry (Buy): ₹915 Breakout Level
🎯 Target 1: ₹957 (*+4.6%*)
🎯 Target 2: ₹1,078 (*+17.8%*)
🛑 Stop Loss: ₹834 (*-8.8% from entry*)
⚡ TRADING STRATEGY
Entry: Buy on closing price > ₹915 with rising volume.
Targets:
Take Partial Profit at ₹957 (book 50% position).
Trail SL for Remainder toward ₹1,078.
Risk-Reward Ratio:
1:2.0 (Target 2) | 1:0.5 (Target 1).
📉 RISK MANAGEMENT
Stop Loss: Strictly adhere to ₹834 (invalidates the pattern if breached).
Position Size: Risk ≤ 1-2% of capital per trade.
Volume Watch: Weak volume on breakout = false signal.
🔍 WHY THIS WORKS?
Technical Strength:
Cup & Handle is a high-probability bullish continuation pattern.
Handle retest at ₹915 shows seller exhaustion.
Historical Context:
₹834 (handle low) acts as strong support, aligning with the 50% Fibonacci retracement of prior swings.
Market Sentiment: Healthcare sector resilience adds momentum.
📊 VISUAL PRICE PATH
Current Price → ₹915 Resistance
│
├→ **Breakout Confirmed** → ₹957 → ₹1,078
│
└→ **Breakdown** → SL ₹834 (Exit)
⚠️ CRITICAL NOTES
Fundamental Catalyst: Monitor earnings/news for confirmation.
False Breakout Risk: Avoid chasing price; wait for close above ₹915.
Time Frame: Pattern validity weakens if breakout stalls for >5-7 sessions.
✅ CONCLUSION
A textbook Cup & Handle pattern with defined risk-reward makes Zota Healthcare a high-conviction long trade above ₹915. Prioritize volume confirmation and strict SL discipline.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.