Stock Market Analysis Report: Lupin Limited (NSE: LUPIN)
Introduction
Greetings, traders! If you're looking for a pharmaceutical stock that might just cure your portfolio blues, look no further than Lupin Limited. This stock is brewing up an interesting pattern that’s worth a closer look. Let’s dive into the technical details and see what’s in store!
Price Action Overview
Chart Analysis
Current Price: ₹1,759.30
Daily High: ₹1,767.00
Daily Low: ₹1,598.25
Volume: 10.039M
Key Technical Indicators
Bearish Gartley Pattern: The chart reveals a bearish Gartley pattern, suggesting a potential reversal.
Rectangle Pattern with Potential False Breakout: The price is within a rectangle pattern, hinting at a potential false breakout.
Decreasing Volume: The volume is on a decline, which could signal weakening momentum.
Detailed Analysis
Bearish Gartley Pattern
Formation: The Bearish Gartley pattern, marked by points X, A, B, C, and D, indicates a potential reversal from the current uptrend.
Implications: This pattern suggests that the stock might face resistance at the current levels and could potentially see a pullback.
Rectangle Pattern with Potential False Breakout
Rectangle Pattern: The stock price is trading within a rectangle pattern, showing consolidation between support and resistance levels.
False Breakout: The current breakout might be a false one, as indicated by the rectangle pattern and the resistance at point D.
Decreasing Volume
Volume Trend: The decreasing volume trend suggests that the current upward momentum might be losing steam.
Significance: Lower volume during a breakout can indicate a lack of strong buying interest, increasing the chances of a reversal.
Price Targets and Support Levels
Immediate Resistance: ₹1,800.00 - This is the next resistance level to watch closely.
Support Levels:
Primary Support: ₹1,600.00 - A key level to maintain for bullish sentiment.
Secondary Support: ₹1,400.00 - A more conservative support level aligning with previous consolidation areas.
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Conclusion
Lupin Limited is showing a bearish Gartley pattern with a potential false breakout within a rectangle pattern. The decreasing volume adds caution to the current bullish momentum. Keep an eye on the resistance level at ₹1,800.00 and monitor the volume to gauge the strength of the current trend. Happy trading, and may your portfolio stay healthy and robust! 🌿💰
Disclaimer
This analysis is based on historical data and chart patterns. Always do your own research and consider your risk tolerance before making any investment decisions.
