2500 Days of Structure? CUP & HANDLE Decoded!📌Left Side (Chart 1: Monthly TF)
🧠 Cup and Handle Pattern:
A bullish continuation pattern that resembles the shape of a tea cup on longer timeframes. The “cup” shows a gradual rounded bottom (accumulation phase), followed by a smaller downward or sideways "handle" (last shakeout), often before strength resumes. It reflects long-term accumulation and investor confidence.
📈 Cup Duration in this case : 1277 days (approx. 3.5 years)
🧠Parallel Channel (Handle):
A price structure where two trendlines contain price movement within a defined up or down slope. Often marks controlled consolidation or correction — neither side is dominating, until one breaks.
📈 Handle Formation in this case : 1250 days (approx. 3.4 years)
📌 Right Side (Chart 2: Weekly TF)
🧠 This is the zoom lens on the handle zone:
📍A key Demand Zone was breached temporarily… but reclaimed with conviction.
📍 Strong re-acceptance and consolidation followed, showing organized price behavior.
📍 The upper trendline of the parallel channel is where price recently pushed through — again, no forecasting — just a structural breakout from a well-defined zone.
Rainindustries
RAIN: Breaks Out of Rising Wedge Pattern Signals Fresh UptrendNSE:RAIN Breaks Out: Rising Wedge Pattern Signals Potential Bullish Run to 180+ Levels
Signals Fresh Uptrend After Months of Consolidation
Price Action:
- NSE:RAIN has been trading within a well-defined rising wedge pattern since March 2025
- The stock has recently broken out above the upper trendline of the wedge at approximately 160 levels
- Current price of 160.74 represents a significant move above the key resistance zone
- The breakout is accompanied by increased volume, suggesting genuine buying interest
Volume Spread Analysis:
• Volume breakout accompanied the wedge pattern breakout
• Higher volumes during up moves compared to down moves indicate bullish participation
• Volume spike visible during the recent breakout at 160+ levels
• Average volume of 972K around today, 3.59M shares with recent surge to higher levels
Base Formation and Accumulation Zone:
• The stock established a strong base between 117-125 levels from March to July 2025
• Multiple retests of the 117 support level showed strong buying interest
• Base formation lasted approximately 4 months, indicating thorough accumulation
• Volume during base formation remained relatively stable with occasional spikes
Key Support and Resistance Levels:
• Primary Support: 117.06 (marked as swing low and base support)
• Secondary Support: 140-145 zone (previous resistance turned support)
• Immediate Resistance: 165-170 zone (next major hurdle)
• Target Resistance: 180-185 zone (measured move target)
• 52-week High: 197.00 (ultimate resistance level)
Technical Patterns:
Rising Wedge Breakout Pattern:
• Clear rising wedge pattern formed over 4-5 months
• Lower highs and higher lows converged into a wedge formation
• Breakout occurred at 160+ levels with strong volume confirmation
• Pattern suggests continuation of the broader uptrend
Trend Analysis:
• Long-term trend: Bullish (higher highs and higher lows since March 2025)
• Medium-term trend: Bullish breakout from consolidation
• Short-term trend: Strong bullish momentum post-breakout
• Moving averages alignment suggests sustained upward momentum
Chart Patterns and Indicators:
• Cup and handle formation visible in the broader timeframe
• Multiple flag patterns during the consolidation phase
• Price above all key moving averages, indicating bullish sentiment
Trade Setup and Strategy:
Entry Levels:
• Aggressive Entry: 155-160 levels (on any minor pullback)
• Conservative Entry: 145-150 levels (on deeper retracement to support)
• Breakout Entry: Above 165 levels with volume confirmation
• averaging between 150-160 for position building
Exit Levels and Targets:
• Target 1: 180-185 levels (initial profit booking - 15-20% upside)
• Target 2: 195-200 levels (testing previous highs - 25-30% upside)
• Target 3: 220-230 levels (extended target - 40-45% upside)
• Swing high exit: Trail stops below key support levels
Stop-Loss Strategy:
• Initial Stop-Loss: Below 140 levels (10-12% risk from current levels)
• Trailing Stop-Loss: Below 150 levels once 180 is achieved
• Pattern Stop-Loss: Below the wedge support around 145 levels
• Time-based stop: Exit if no progress in 2-3 months
Position Sizing and Risk Management:
• Maximum position size: 2-3% of total portfolio
• Risk per trade: Not more than 1% of portfolio value
• Scale in approach: 50% at entry, 30% on dip, 20% on breakout confirmation
• Maintain a risk-reward ratio of a minimum of 1:3
Sectoral and Fundamental Backdrop:
Company Overview:
• NSE:RAIN is one of the world's largest producers of calcined petroleum coke, coal tar pitch and other high-quality basic and speciality chemicals
• Market Cap: 5,405 Crore with Revenue: 15,472 Cr
• Promoter Holding: 41.2% indicating stable management control
Financial Health Assessment:
• The company has a low interest coverage ratio, which poses some financial risk
• Net Profit: ₹-115.10Cr as on March 2025 (Q4 FY25) showing current losses
• The company has delivered a poor sales growth of 4.46% over the past five years
• Recent debt reduction efforts as management focuses on prepaying obligations
Business Segments Performance:
• Carbon Business: Environment-friendly and energy-efficient practices have made RAIN's carbon business highly profitable and sustainable
• The carbon business co-generates energy at six calcined petroleum coke plants with a combined power-generation capacity of approximately 135 MW
• The speciality chemicals segment is showing resilience despite market challenges
Sector Outlook and Industry Trends:
• In 2025, the industry is expected to continue its recovery, adjusting to new market drivers while balancing short- and long-term goals
• Chemical industry focusing on decarbonization and innovation initiatives
• India Ratings affirms Rain Industries' credit rating at IND A/Stable with stable outlook and improved operational outlook
Key Risk Factors:
• Cyclical nature of the chemical industry affecting margins
• High debt levels and interest coverage concerns
• Global economic slowdown has an impact on demand
• Raw material price volatility
• Environmental regulations affecting operations
Positive Catalysts
• Debt reduction strategy showing management commitment
• Stable credit rating with improved operational outlook
• Strong technical breakout indicating renewed investor interest
• Global chemical industry recovery supporting sector sentiment
• Energy co-generation capabilities providing cost advantages
Risk Assessment and Monitoring:
Key Levels to Watch:
• Break below 145: Bearish signal, consider exit
• Sustain above 165: Bullish confirmation for higher targets
• Volume patterns: Declining volume on up moves would be concerning
• Sector rotation: Monitor chemical sector performance relative to the broader market
Regular Review Parameters:
• Weekly closing above key moving averages
• Monthly volume trends and institutional participation
• Quarterly earnings performance and guidance
• Industry developments and regulatory changes
• Management commentary on debt reduction progress
Exit Triggers:
• Fundamental deterioration in business metrics
• Break of key technical support levels
• Adverse sector developments
• Better opportunities in other stocks/sectors
• Achievement of target levels with profit booking
My Take:
NSE:RAIN presents a technically attractive setup with the rising wedge breakout, but investors should be cautious about the fundamental challenges. The trade setup offers good risk-reward ratios for short to medium-term positions, while long-term investors should wait for clearer signs of fundamental improvement.
Keep in the Watchlist and DOYR.
NO RECO. For Buy/Sell.
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Disclaimer: "I am not a 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.
RAIN- Good consolidation - 40%+ potential - Strong BO possible? Price Analysis & Overview:
1. Good consolidation.
2. Exceptional volumes surges.
3. Price reacting from the higher levels but also not willing to move down at the same time showing equal buying & selling strength.
Price need to cross 187 level for buyers to get dominated.
4. RRR is favourable.
5. Must be on Radar.
Trade Plan:
Entry = Post 185 level BO
SL = 10-15%
TP = 1:2,1:3,1:4,1:5
- Stay tuned for further insights, updates and trade safely!
- If you liked the analysis, don't forget to leave a comment and boost the post. Happy trading!
Disclaimer: This is NOT a buy/sell recommendation. This post is meant for learning purposes only. Views are personal. I share whatever I do. Please, do your due diligence before investing.
Thanks & Regards,
Anubrata Ray
SWING IDEA - RAIN INDUSTRIESRain Industries has emerged as an intriguing prospect, presenting a compelling case for a potential upswing.
Reasons are listed below :
Rain Industries has established a sturdy support base at the 145 level, providing a solid foundation for potential upward movement.
The weekly timeframe reveals a bullish engulfing candle, signaling a potential shift in sentiment and setting the stage for a positive trend reversal.
A bullish marubozu candle on the daily chart further strengthens the bullish case, indicating strong buying interest and potential momentum in the short term.
The stock is bouncing back from the golden Fibonacci zone, adding a technical aspect to the trade setup and reinforcing the probability of a favorable price movement.
The uptick in trading volumes is a positive indicator, suggesting growing market interest and participation in Rain Industries.
Despite highs shifting down, the absence of new lows is a noteworthy observation, hinting at a potential reversal and the resilience of the stock in the face of downward pressure.
Target - 184 // 206 // 253
StopLoss - weekly close below 145
RAIN INDUSTRY MULTIYEAR TRENDLINE BREAKRAIN Industry has given Trendline Breakout couple of weeks back, It gave its range breakout of 190 odd levels last week.
Support below160 DCB as all weekly EMA has confluence at those levels.
This is tricky script has multiple instances of failed breakout in past so decide as per your risk appetite...
DISCLOSEURE:- This post is for educational purpose only,
I am not certified SEBI RA or TA,
RAIN Industries not a bullish setupRain Industries is one stock where retails are more optimistic than the promoter but techinically their are 3 major red flags in price action
1 It has not crossed 61.8% retracement of fall from ATH to bottom 2020
2 The rise from lows of 2020 is not impulsive (god knows how some people are marking impulsive rise from 2020 bottom)
3 It has not crossed 61.8% retracement of fall from 2021 top to recent bottom yet
Why people try to force counts when we see every move is over lapping their are more than 5000 stocks traded on NSE still people are forcing their own views in name of technicals & a sudden price action in direction of their trend they count themselves as doing miracle my personal take is when its difficult to fit Elliott counts stay away from the Stock.
RAIN review - giving ample opportunity to enter for 270++NSE:RAIN
cmp 178
chart posted on 5th Sept 2023 when the price was 174
spent 3 months near this price and now it looks like going up
expecting 270 as 1st target
The objective of this analysis is knowledge sharing and education. There isn't any buy or sell advise in this article. Every stock is held for a short to medium amount of time and is positional.
It is expected of each person to carry out independent research and evaluation to ascertain whether my perspective is consistent with your studies.
link of 5th Sept 2023 article posted below
Buy Rain - Before It becomes "come again"Fundamentals:
Positive:
1. Increase in revenue
2. Profit from operating activities are increasing
3. Book value per share is increasing
4. ROCE increasing
5. Debt to equity is 1.1
Negative
1. Recent Qtr performances
2. 41% promoter holding
Technical:
1. Multi-year trendline breakout
2. High momentum
3. High Volume
Therefore buy it before it feels like,
" Rain - Rain Come Again"
SL : 158
R1: 185, R2: 203, R3:258
RAIN INDUSTRIES READY TO RAIN MONEY.RAIN INDUSTRIES on weekly TF looks promising for a potential BIG breakout.
Weekly candle is very bullish, KEEP A LONG TERM VIEW.
ENTRY AT CURRENT PRICE OR IN THE RANGE OF 150-160
STOP LOSS @140
TARGETS : 190, 200, 250
TRAIL USING A COMBINATION OF 20 AND 50 EMA ON DAILY TF.
RAIN Industries - Bottom Forming pattern - Multibagger📈 Exciting Bullish Pattern Alert! 🐂
📊 Pattern: Falling Wedge
📌 Symbol/Asset: RAIN
🔍 Description: Stock is forming falling wedge pattern around the Long Term Support.
We can clearly see bottom is in making.
There is a strong support of around 130-135 and we can see huge bounce from hereon.
Rain Industries is a Buy On Dips.
Not to Miss this opportunity.
👉 Disclosure: We are not SEBI registered analysts, this is not a buy or sell recommendation.
EXCITING BULLISH PATTERN📈 Exciting Bullish Pattern Alert! 🐂
📊 Pattern: Wedge
📌 Symbol/Asset: Rain
🔍 Description:
Moment Stock with Strong Support on hourly and daily chart. Trading above 200 day EMA lows.
👉 Remember: Technical patterns are just one piece of the puzzle. Consider conducting further research, consulting with a financial advisor, and managing your risks appropriately.
RAINRAIN:- The stock has given a breakout, if the stock sustains above 164.75 then we can see an upside movement
Hello traders,
As always, simple and neat charts so everyone can understand and not make it too complicated.
rest details mentioned in the chart.
will be posting more such ideas like this. Until that, like share and follow :)
check my other ideas to get to know about all the successful trades based on price action.
Thanks,
Ajay.
keep learning and keep earning.
RAIN trend change?1. Buy or Sell at your own risk
2. Don't risk more than 1%-2% of your capital as stop loss
3. Position Size formula: - Stop Loss Amount/(Buy Price - Initial Stop Loss Price)
4. Sell on initial Stop Loss hit or RSI close below 40
5. Some other ways to sell stocks can be
a. 25% or 50% up in three weeks or less
b. Weekly tailing tops with high volume
c. Exhaustion gaps
d. Heavy daily volume without further upside
e. Largest one day price drop
It looks like the downtrend in NSE:RAIN is going to change. It's a buy with stop at ₹155.
Disclaimer: I am not SEBI Registered. Do trade or invest at your own risk, I am not responsible for any losses and won't claim anything from your profits either. Take financial advice from your advisors before jumping in.