VEDL - Cup and Handle breakout - wkly This chart shows the long-term price action of Vedanta Ltd stock from 2008 to 2024. Here's an analysis of the key points:
1. Overall trend: The stock has shown a long-term bullish trend, forming a large cup and handle pattern over several years.
2. Price levels:
- Current price: 501.75 INR
- Historical high: 506.75 INR
- Historical low: 58.15 INR
3. Key resistance level: There's a significant resistance level at 428.35 INR, which the stock has recently broken through.
4. Cup and handle formation:
- The cup formed from 2010 to 2021
- The handle formed from 2021 to early 2023
- The stock has now broken out of this pattern, suggesting potential for further upside
5. Recent breakout: The stock has broken above the previous resistance at 428.35 INR, which could now act as support.
6. Volume: While volume information is limited, there are some spikes visible in 2020-2021, possibly correlating with increased interest in the stock.
7. Price targets:
- A longer-term target is shown at 797.59 INR, based on the cup and handle pattern projection
8. Current momentum: The stock is in a strong uptrend, having broken out of the cup and handle pattern and surpassing previous resistance levels.
9. Potential support: The previous resistance at 428.35 INR could now act as support if the stock pulls back.
This chart suggests a bullish outlook for Vedanta Ltd, with the stock breaking out of a long-term pattern and setting new highs. However, investors should be aware that past performance doesn't guarantee future results and should consider fundamental factors alongside this technical analysis.
