ALPA -Cup and Handle -Breakout -Daily -Unusual VolumeAnalysis of ALPA Laboratories Chart:
Cup and Handle Pattern:
The chart shows a well-defined cup and handle formation, which is a bullish continuation pattern. The cup part indicates a rounded bottom consolidation, while the handle signifies a short-term correction or pullback before the breakout.
The depth of the cup highlights a significant period of accumulation, followed by a breakout. The pattern started in early 2022 and was completed by 2023.
Shakeout & Volume Analysis:
The chart highlights that there was no significant volume during the breakout, leading to what is referred to as a "shakeout or false breakout." This indicates that weak hands were shaken off before the stock eventually surged.
However, the chart marks a retest after the shakeout, during which the stock bounced back with huge volume. This volume surge indicates strong buying pressure and institutional accumulation, validating the breakout as genuine.
Price Targets:
Based on the cup and handle pattern, the projected price target for the stock is 170 INR, as noted in the chart.
The price target calculation is typically done by measuring the depth of the cup and adding it to the breakout point, which appears to align with the chart's projection.
Recent Breakout:
The stock has recently broken out above a resistance level of 108.82 INR, with a strong surge in volume, indicating the potential for further upward momentum.
The breakout shows clear upward movement, with the stock currently trading at around 132 INR, gaining around 19.28% for the day.
Current Resistance and Support:
Resistance is noted at around 170 INR, as the price target based on the breakout.
Support lies around 108.82 INR, where the retest and bounce occurred, providing a strong support level going forward.
Conclusion:
ALPA Laboratories has shown a strong bullish breakout following a textbook cup and handle pattern. The significant volume during the retest and breakout indicates that the stock may have more upside, with a target of 170 INR in the coming weeks or months.
