Get started

Double Top or Bottom

Nifty Pharma: Double Top or Bull Flag?The pharmaceutical sector, represented by Nifty Pharma, has been on a remarkable journey over the past three months, rallying approximately 30%. This surge has been characterized by a breakout above its previous all-time highs by more than 700 points. However, in recent days, Nifty Pharma has found itself trading within a range of 15,000 to 15,750, with the previous all-time high acting as a crucial support level. As traders and investors closely monitor these developments, the question arises: Is this a double-top pattern forming, or could it be a bull flag signaling the potential for another upward surge and the creation of new all-time highs? Let's delve deeper into the possibilities. Understanding the Double Top Pattern A double-top pattern is a bearish technical chart pattern that suggests a potential reversal of an ongoing uptrend. It typically occurs after a prolonged upward movement and is characterized by two peaks that reach a similar price level, separated by a trough. The pattern is confirmed when the price breaks below the trough, indicating a shift in market sentiment from bullish to bearish. In the case of Nifty Pharma, it's important to note that the price has not yet breached the previous all-time high, which is currently acting as a support level of around 15,000. Therefore, while the price may appear to be forming a double-top pattern, it has not yet confirmed this bearish reversal. The Potential for a Bull Flag On the other hand, a bull flag is a bullish continuation pattern that often occurs after a strong upward move in price. It is characterized by a consolidation phase, where the price trades within a narrow range in the form of a flag, typically sloping downward. This consolidation is seen as a temporary pause before the prevailing uptrend resumes. In the case of Nifty Pharma, the consolidation between 15,000 and 15,750 could potentially be interpreted as a bull flag. This pattern suggests that despite the recent rally and the subsequent consolidation, there might be further upside potential, and new all-time highs could be on the horizon once the flag pattern resolves to the upside. Factors to Consider While technical analysis can provide valuable insights, it's important to remember that market dynamics are influenced by a multitude of factors, including economic conditions, news events, and global sentiment. In the case of pharmaceutical stocks, factors such as drug approvals, clinical trial results, and regulatory changes can have a significant impact on stock prices. Conclusion The recent performance of Nifty Pharma has certainly caught the attention of traders and investors alike. The current consolidation phase within the 15,000 to 15,750 range, with the previous all-time high acting as a support level, has sparked debates about whether a double top pattern is forming or if a bull flag is in play. While the technical patterns provide important clues, it's crucial to consider the broader market context and fundamental factors that can influence the pharmaceutical sector. Traders and investors should remain vigilant, monitor news developments, and be prepared for various scenarios. Ultimately, whether Nifty Pharma resumes its rally to create new all-time highs or experiences a reversal, careful analysis and risk management will be essential for anyone looking to navigate the pharma sector in the coming days and weeks.
NSE:CNXPHARMA
by TrendTechnician
Done with the AUSSIES... Now see Shriram PROPERTIES- Company is expected to give good quarter - Company has delivered good profit growth of 23.4% CAGR over last 5 years - Debtor days have improved from 81.8 to 42.6 days. - Annual Revenue rose 57%, in the last year to Rs 814 Crores. Its sector's average revenue growth for the last fiscal year was 14%. - Annual Net Profit rose 574% in the last year to Rs 66 Crores. Its sector's average net profit growth for the last fiscal year was -15%. - PE ratio is 21 vs sector PE ratio of 101. Negative - Promoter holding is low: 28 % - Mutual Fund Holding decreased by 1.05% in the last quarter to 4.07.
NSE:SHRIRAMPPSLong
by CannySunny
5th Oct ’23 - Bearish despite gap-up - PostMortem BankNiftyBankNifty Analysis BankNifty had a similar chart pattern as that of Nifty. An opening gap-up of 272pts ~ 0.6% and then a 2nd leg of rally from 10.30 of 279pts ~ 0.63%. The only difference I saw was that after the day’s high was hit - BankNifty started falling gradually whereas Nifty went flat. Tomorrow’s RBI MPC outcome at 10.00 might be interesting. We would like to see how RBI governor is planning to suck the liquidity out. The I-CRR implementation and then its withdrawal created a ruckus last time. Markets fell first and then recovered equally. If the liquidity is left unchecked - the costs of goods & services will keep getting inflated. Unlike other developed countries - we do not want to hurt the growth and the growth in inflation is not hurting us that badly. I do not wish to change my bearish stance on BankNifty despite an up day today. The M pattern at 44650 levels are looking quite strong for me and until BankNifty takes them out - I do not even plan to go neutral as well. The biggest enemy of the bears is the implied volatility - the options premiums are not expecting a massive move this week even though we have an RBI event. Option sellers are having a tough time these days - I still think it's much better not to trade than sell strikes cheaply.
NSE:BANKNIFTYShort
by viswaram
3rd Oct ’23 - A double M pattern, Quadruple top - BankNiftyBankNifty Analysis For today I had a neutral stance instead of a bearish one - mainly because we made a double bottom pattern in the last session. But the opening 5mts candle simply negated that in one go. Still, Banknifty was staying relatively strong versus Nifty. Both of them did break the swing low - but BankNifty’s recovery was more convincing. Bulls should not take it as a good sign - because the fall and the recovery look like an inverted flag. Since it's on 5mts TF - it may not have that much significance yet. On the 1hr TF - the W pattern stands negated. We now have an M pattern. If the preceding peaks are considered with a bearish tint - we have a double M pattern or a quadruple top. The only relief for the bulls is that the index is not making a lower low. For tomorrow I wish to change my stance from neutral to bearish and hope that the 44068 gets taken out.
NSE:BANKNIFTYShort
by viswaram
3rd Oct ’23 -The opening 5mts candle has a story to tell - NiftyNifty Analysis Recap from yesterday: “My stance still remains bearish with the first downside target of 19446. The moment we break 19776 on the upside — I wish to exit the short stance and go long.” The first target of 19446 was not today even though we dropped 103pts in the opening 5mts. The low of today was 19479 breaking the recent swing low of 19492. Two surprising things happened today The strength of the opening candle - unbelievable and unexpected. The reluctance to fall after that - shows true ruggedness. Usually, strong candles like that play out when there is strong news/event flow. I dont remember reading anything in particular before the trading session. Secondly, the character of the market to remain calm after such an opening is again unbelievable. As I write this article SPX is down -1.47%, NDQ -1.7%. Remember most markets had a RED September - so comparatively we are still the top most performing market. My point is - if a global fall is getting underway, our markets will have more points to lose in absolute terms. The orange support and resistance lines remain the same, the bottom one is @ 19446, top one at 19776. We just completed an M pattern (double top) on the 1hr TF. For tomorrow I continue to remain bearish with the support getting broken in the opening 1hr. Ideally, we should retest the 19310 support if not break it.
NSE:NIFTYShort
by viswaram
GAEL looks goodThe price seems to have reached a bottom, showing signs of reversal as it has broken upward after a period of uncertainty or consolidation. Diamond pattern has been witnessed in the stock GAEL. The Diamond pattern begins during a downtrend as prices create higher highs and lower lows in a broadening pattern. Then the trading range gradually narrows after the highs peak and the lows start trending upward. When the price breaks upward out of the diamonds boundary lines, it marks a significant reversal to a new uptrend. Also in this stock witnessed the Double Bottom pattern formation during a downtrend as the price reaches two distinct lows at roughly the same price level. Volume reflects a weakening of the downward pressure, tending to diminish as the pattern forms, with some pickup at each low, less on the second low. Finally the price breaks upward above the highest high to confirm the bullish signal. Buying area, targets are mentioned in the chart and are self-explainatory. Note for everyone who came across this study: This chart is only for educational purpose. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial advisor before taking any trade.
NSE:GAEL
by hardeepssethi
TGV Sraac Ltd - Looks Good!BSE:TGVSL Looks good for an uptrend! It seems like a potential trend reversal in this stock, possibly in the context of technical analysis. Here's a breakdown of the key elements: Price Reaching a Bottom: This suggests that the stock price has been in a downtrend for a period, and it has recently stopped declining or slowed down significantly. Signs of Reversal: This indicates that there are indications or patterns in the price movement that suggest the trend may be changing. These signs can include technical indicators, candlestick patterns, or other chart patterns. Breaking Upward: This means that the stock price has moved above a specific level or trendline, often referred to as a resistance level. Breaking above this level is seen as a bullish signal. Period of Uncertainty or Consolidation: Prior to the breakout, the price may have been moving sideways in a range, which is known as consolidation. This phase typically indicates indecision in the market. When traders and investors observe these patterns and signs, they may interpret it as an opportunity to enter a long (buy) position, anticipating that the price will continue to rise. However, it's important to note that technical analysis is just one approach to market analysis, and it should be used in conjunction with other forms of analysis (fundamental, sentiment, etc.) to make informed trading decisions. Additionally, not all trend reversals are successful, so risk management is crucial in trading.
BSE:TGVSL
by hardeepssethi