RELINFRA - Cup and Handle -Breakout- WklyRELINFRA - Cup and Handle -Breakout- Wkly
This chart shows the price action of Reliance Infrastructure Ltd on the Indian National Stock Exchange (NSE). Here's an analysis of the key features:
1. Overall Pattern: The stock has formed a large cup and handle pattern from 2018 to present. This is typically a bullish continuation pattern.
2. Recent Price Action:
- The stock has broken out of the handle part of the pattern.
- Current price is 316.30 INR, up 48.79% on wkly, indicating a significant bullish move.
3. Key Levels:
- A major resistance level at around 300.25 INR has been broken, which could now act as support.
- The previous high of 635.70 INR from 2017 could be a long-term resistance target.
4. Volume:
- There's a notable spike in trading volume coinciding with the recent price breakout, supporting the bullish move.
5. Price Targets:
- The chart shows a potential near-term target of 592 INR (labeled "Can test 592").
- This target represents a 96.73% move from the bottom of the cup formation.
6. Historical Context:
- The stock experienced a significant decline from 2017 to 2020, forming the "cup" part of the pattern.
- Since 2020, it has been in a general uptrend, forming the right side of the cup and the handle.
7. Recent Pullback:
- The stock recently experienced a pullback (forming the handle of the pattern), which found support and has now broken out to the upside.
8. Volume Moving Average:
- The recent volume spike is well above the volume moving average, indicating strong buying interest.
Overall, the chart presents a bullish outlook for Reliance Infrastructure Ltd. The breakout from the cup and handle pattern, supported by high volume, suggests potential for further upside. The next key level to watch would be the target at 592 INR. However, as with any breakout, there's always a possibility of a pullback to test the breakout level (around 300 INR) as support. Traders should also be aware that such a large single-day move (48.79%) might be followed by some consolidation or profit-taking.
