AMBER - Cup and Handle -Breakout - Good Vol -Daily Here's an analysis of the key features:
1. Overall Pattern: The stock has formed a large cup and handle pattern over the past year, with the handle recently completing.
2. Recent Price Action:
- The stock has broken out of the cup and handle pattern with a significant bullish move.
- Current price is 4,994.65 INR, up 14.88% on the day, indicating strong buying pressure.
3. Key Levels:
- A major resistance level at around 4,633.90 INR has been broken, which could now act as support.
- The previous high of 5,187.95 INR (marked as "High" on the chart) has been surpassed.
4. Volume:
- There's a substantial spike in trading volume coinciding with the breakout, supporting the bullish move.
- The volume is significantly above the volume moving average, indicating strong buying interest.
5. Price Targets:
- The chart shows a potential long-term target of 6,281.05 INR.
- This target represents a potential gain of 35.42% from the breakout point.
6. Support Levels:
- The previous resistance at 4,633.90 INR should now act as support.
- There's another support level at 4,382.00 INR, which was the low of the breakout candle formation.
- There's another support at 4,006 INR, which is low of the box formation.
7. RSI (Relative Strength Index):
- The RSI at the bottom of the chart shows an uptick, confirming the bullish momentum.
- However, it's not in extremely overbought territory, suggesting there might still be room for further upside.
8. Historical Context:
- The stock has been in an overall uptrend since late 2023, with the cup and handle formation developing over this period.
- The current move represents a significant breakout from this pattern.
Overall, the chart presents a bullish outlook for Amber Enterprises (I) Ltd. The breakout from the cup and handle pattern, supported by high volume, suggests potential for further upside. The next key level to watch would be the target at 6,281.05 INR.
However, traders should be cautious of potential short-term pullbacks due to:
1. The large single-day move (14.88%)
2. The stock being at all-time highs, which could lead to some profit-taking
It would be prudent to watch for how the stock behaves around the current level and whether it can hold above the broken resistance at 4,633.90 INR in case of a pullback. The strength of the move and the volume supporting it suggest that any pullbacks might be seen as buying opportunities by the market.
