Ambuja Cement : An interesting possibility of cup-handle patternI am seeing an interesting possibility in NSE:AMBUJACEM .
The price-action has the following characteristics:
It's creating an ascending triangle pattern over weeks - bullish
A very long rounding-bottom/saucer pattern formation is completed.
It's near to the price breakout.
Volumes, Cumulative Open interest long buildups all are fine. No issue: Bullish indication
Now I can postulate two possibilities:
If price stays above the horizontal trendline at CMP decisively, the possible higher range breakout is done and its clearly going to go up (shown by a slanting up arrow)
There is a possibility price will retrace back at the ascending line of the ascending triangle then it will come upto the hand-drawn circle in the chart.
Then we need to see if its able to create a Cup-and-Handle pattern from the saucer pattern and get a nice breakout later on.
Which I am applying an interesting Time Series prediction algo (ECHO by LuxAlgo) with cumulative predictive method - I am seeing it's going to be a Cup-and-Handle and then a breakout towards Dussera timeframe. (I know people will laugh at me ... I am just seeing it in the chart by predicting naively the future price looking at the previous price patterns using the TimeSeries prediction with cumulative averaging.
Two additional factors to remember:
Overall, market shows a short term trend reversal.
However, Cement sector is very strong.
So lets see another 1/2 days of price action before jumping into it.
Overall: I am bullish .. now or after Dussehra (Oct 1st week).
