UNIONBANK: Cup & Handle Sets Stage for UpsideThe chart for Union Bank of India Limited (NSE: UNIONBANK) shows a classic "Cup and Handle" pattern forming over a multi-year period, which is a bullish technical setup supported by steadily increasing volume and positive price action.
• The cup portion covers a deep, rounded bottom with a gradual recovery, fulfilling classic characteristics of the pattern.
• The handle is a minor consolidation after the uptrend, with no deep pullback, which matches a bullish setup.
• Volume increases during the breakout, confirming upward momentum as per technical analysis norms
• The moving averages are trending up, further reinforcing the bullish sentiment.
Entry Target:
The ideal entry is around the breakout level of the handle, which is close to ₹148-150 per the latest monthly close shown on the chart, with a swing target of 160 on immediate basis.
Breakout Level:
The breakout occurs as price closes above the handle’s resistance, which aligns with the ₹160-162zone and provides confirmation. For better risk to reward ratio buyout above 162 levels is suggested.
Investor Targets:
• Target-1: ₹205, which is the first target based on the pattern's height projection.
• Target-2: ₹250, the next logical resistance level using the pattern’s depth and typical bullish extension.
• Price Target: ₹300-304, which is a long-term target if the momentum sustains and the bullish breakout persists.
Stop Loss:
• Place a stop loss below handle support, marked at ₹108 o n a closing basis to manage risk.
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