EPL - Breakout Post Good Q4NSE:EPL Made Beautiful Chart Structure today after posting good Q4 Results with Good Price and Volume action.
Price Action Analysis:
Resistance Breakout:
1. Primary Resistance Break: The stock has successfully broken above the well-defined resistance zone at ₹203-205 (lower red rectangle), which had contained price movements since mid-April.
2. Approaching Major Resistance: With today's 4.57% gain, EPL is now testing a critical longer-term resistance level at ₹210-213 (upper red rectangle), which has capped prices since late February after a sharp decline from the ₹250+ level.
3. Base Formation: After hitting lows around ₹183 in early April, the stock has formed a constructive base pattern with higher lows, suggesting accumulation and buying support at progressively higher levels.
Volume Analysis:
Today's volume characteristics strongly support the bullish case:
- Volume of 3.34M shares is significantly above the 20-day average of 895.96K (nearly 4x normal volume)
- The volume spike coincides perfectly with the upside breakout
- Prior consolidation showed decreasing volume, typically a precursor to a volume-supported breakout
- The recent accumulation phase (late April to early May) displayed positive volume patterns
Key Support and Resistance Levels:
Key Resistance Levels:
1. Immediate Resistance: ₹210-213 (upper red rectangle - critical level being tested now)
2. Intermediate Resistance: ₹225 (reaction high from mid-February)
3. Major Resistance: ₹250-255 (February high)
Key Support Levels:
1. New Support: ₹203-205 (previous resistance now converted to support)
2. Secondary Support: ₹195-198 (consolidation range from late April)
3. Strong Support: ₹183-185 (April lows and beginning of current base)
Technical Patterns:
1. Double Bottom: The March and April lows near ₹183-190 formed a double bottom pattern, typically a reversal signal.
2. Range Breakout: Today's move represents a clear breakout from the April-May trading range.
Volume Confirmation:
The volume trend provides strong confirmation:
- Clear volume divergence during the April bottom (decreasing volume on downmoves)
- Increasing volume during recovery phases
- Today's substantial volume spike on breakout (3.34M shares)
- Volume well above average throughout May, suggesting institutional participation
My Outlook:
The combination of a multi-week base breakout with exceptionally strong volume support signals a potentially significant shift in momentum. The key technical question now is whether EPL can overcome the major resistance at ₹210-213.
If the stock can close convincingly above ₹213 in the coming sessions, it would complete a substantial bottoming pattern with potential upside targets at ₹225 initially and ₹240-250 longer-term. Conversely, failure at this resistance could lead to a retest of the breakout level at ₹203-205, which should now provide support.
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Disclaimer: "I am not SEBI REGISTERED RESEARCH ANALYST AND INVESTMENT ADVISER."
This analysis is intended solely for informational and educational purposes and should not be interpreted as financial advice. It is advisable to consult a qualified financial advisor or conduct thorough research before making investment decisions.
