METROPOLIS – Big Volume Breakout + Price Action + Momentum___________________________________________________________________________
📈 METROPOLIS – Big Volume Breakout | Strong Momentum Building |
Price Action | Volume Structure
🕒 Chart Type: Daily Chart
📆 Date: July 9, 2025
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Price Action: METROPOLIS HEALTHCARE LTD has delivered a strong breakout on the daily chart, moving out of a multi-week consolidation zone between 1880–1910 with a wide-range bullish candle on July 9. This breakout above the key resistance of 2110.9 comes with a clean structure, strong closing, and sharp momentum — now placing the stock near its 52-week high. The accumulation phase is likely over, and this price action suggests the beginning of a new trend. As a key player in the diagnostics sector, METROPOLIS is gaining renewed attention post-COVID, with the healthcare space showing strong tailwinds and fresh investor interest.
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Chart Pattern: The chart is showing a Flat Base Breakout following a multi-week consolidation, indicating the potential beginning of a new momentum leg within the broader structure. Notably, the base was tight and shallow, which is considered a strong bullish signal as it reflects controlled accumulation and limited profit-booking. This clean breakout hints at renewed strength and the possibility of sustained upside if volume and structure hold.
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Candlestick Pattern: NA
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Volume Analysis: The volume analysis strongly supports the breakout, with trading volume on the breakout day soaring to over 5 times the average of the past 20 sessions. This surge was not just in quantity but also in delivery volume, signaling that the move was backed by genuine long-term accumulation rather than intraday speculation. As the classic saying goes, “volume precedes price” — and this sharp spike clearly points to smart money entering the stock, lending credibility to the breakout and hinting at further upside potential.
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Technical Indicators: The technical indicators paint a strongly bullish picture. The RSI on the daily timeframe is at 84, which, while overbought, reflects strength and momentum rather than exhaustion. The MACD has triggered a bullish crossover, with a steadily rising histogram indicating a healthy momentum buildup. Both CCI and Stochastic oscillators are deep in bullish territory — CCI above 300 and Stochastic over 88 — highlighting the intensity of the current uptrend. Additionally, the price has expanded beyond the upper Bollinger Band, suggesting the start of a volatility expansion phase, which often accompanies strong directional moves.
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Support & Resistance: The stock has given a decisive breakout above ₹2110.9, which now acts as a strong reference point and the official top of its recent consolidation range. This level was pierced by a bullish candle backed by high volume, confirming strength and conviction in the move. Ahead, the stock faces its first hurdle at ₹2157, a short-term resistance just above the breakout zone where minor profit-booking may emerge. Beyond that, ₹2256.1 marks a key medium-term resistance aligned with a previous swing high — a level to watch closely if the rally continues on solid volume. For positional traders, ₹2401.3 stands as a distant resistance zone that, while weak, could be relevant if momentum accelerates. On the downside, ₹1912.7 offers immediate support, being the level that held firm during base formation. If deeper retracements occur, ₹1767.5 and ₹1668.4 are layered supports where the price previously showed strength. At the very base lies ₹1315, the major long-term demand zone — a structural support that triggered the prior trend and serves as the final defence in case of any broad weakness.
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What’s Catching Our Eye: The price has decisively broken above a multi-week resistance zone, and what makes this move stand out is the massive volume backing it. This isn't just a random spike — it's a structured breakout with all the internals lining up beautifully. Momentum indicators like RSI, MACD, CCI, and Stochastic are all in bullish alignment, confirming that the strength is real and not a one-off event. This kind of confluence often signals the start of a meaningful trend, not just a short-lived rally.
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What We’re Watching For: The key question now is whether the price can sustain above ₹2110.9, the breakout level, without slipping back into the previous range — a crucial sign of breakout validation. We're also keeping an eye out for a healthy pullback toward the ₹1880–₹1910 zone, which could offer a far better risk-reward entry if the uptrend remains intact. Most importantly, the bigger picture is in focus: Is this the beginning of a larger trend aiming for ₹2400+, or are we simply witnessing a short-term momentum burst? The next few sessions will be critical in answering that.
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Best Buy Level for Equity (Low Risk Idea): A low-risk buying opportunity opens above ₹2110.9, but only if the price sustains this breakout for a day or two — confirming strength and avoiding a false breakout scenario. Alternatively, a pullback to the ₹1880–₹1910 zone could offer an excellent risk-reward setup, especially if accompanied by a clear bullish reversal signal (like a strong candle or volume spike). In both cases, keep a strict stop loss at ₹1839 on a closing basis to protect against deeper downside.
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Sector Tailwinds: The diagnostic sector continues to build long-term strength in the post-COVID landscape, as healthcare awareness and preventive testing become mainstream. Investors are increasingly allocating capital toward healthcare services, recognizing their structural growth potential. Add to that the rising urban demand for quality diagnostics and the company's strong brand trust, and you get a solid layer of fundamental support fueling this rally — making the technical breakout even more meaningful.
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Risk to Watch: If the price fails to hold above ₹2110 and starts slipping below ₹1910, there’s a real risk of this breakout turning into a false move. While the current momentum is strong, indicators are overheated, which increases the chances of a short-term pullback or shakeout. Most importantly — no confirmation means no trade. Avoid chasing blindly; let the price action validate the move before committing capital.
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What to Expect Next: The stock may see a sideways move or a minor pullback toward the ₹1910 zone as it digests the breakout. However, if the price holds above the breakout level, we could see a continuation move toward ₹2157–₹2256 in the near term. The key to watch is volume — if the stock holds near highs with rising volume over the next 2–3 sessions, it could trigger a strong trending move, confirming that smart money is firmly in control.
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How to Trade METROPOLIS (For Educational Use Only):
Here’s a simple Breakout Trade Plan based on current structure and volume confirmation:
🔹 Entry: Above ₹2110.9 — either on a successful retest of the breakout level or a clean follow-through candle with strength
🔹 Stop Loss: ₹1839 (on closing basis) to protect capital in case of breakdown
🔹 Risk-Reward: Aim for 1:1 initially, then trail for 1:2+ if momentum holds
🔹 Position Sizing: Adjust based on your capital, risk appetite, and SL range — avoid going all-in; stay disciplined with allocation
📌 Always follow your trading plan. This setup is for educational and analysis purposes only.
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⚠️ Disclaimer (Please Read):
• This chart is shared for educational purposes only and is not investment advice.
• I am not a SEBI-registered advisor.
• The information provided here is based on personal market observation.
• No buy/sell recommendations are being made.
• Please do your own research or consult a registered financial advisor before making any trading decisions.
• Trading involves risk. Always use proper risk management.
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