Shriram Pistons - Wedge BO NSE:SHRIPISTON Made Beautiful Chart Structure today after Q4 Results with Good Price and Volume action.
Wedge Breakout Pattern History:
The chart displays a remarkable track record of successful wedge breakout patterns, which has become a defining characteristic of this stock's technical behaviour:
Past Wedge Breakout Sequence:
First Wedge (2022-2023): Initial falling wedge formation around the ₹550-700 range, which broke out to the upside and catalysed a strong rally.
Second Wedge (Mid-2023): Formed after the first major run-up at the ₹1,000-1,200 level. This wedge breakout propelled the stock toward the ₹1,600 level.
Third Wedge (Early 2024): A more compact wedge pattern around ₹1,800-2,000 that triggered another significant upward move.
Fourth Wedge (Recent): The latest wedge formation, which has just broken out with today's massive 14% price surge.
Pattern Reliability:
What makes this technical setup particularly compelling is the consistency of these wedge patterns:
Each wedge has followed a similar compression pattern
All previous breakouts have led to substantial price advances
The patterns have maintained their predictive validity across different market cycles
The breakouts have consistently occurred on higher-than-average volume (implied by the large price bars)
Current Breakout Analysis:
Today's 14% surge represents a powerful breakout from the most recent wedge pattern:
The breakout has occurred with exceptional momentum (nearly 20% gain on a weekly TF)
The price action has cleared both the upper trendline resistance and previous swing highs
The stock is now approaching its all-time high of ₹2,399.00
Price Structure & Technicals:
Beyond the wedge patterns, the stock shows several positive technical characteristics:
Consistent stair-step pattern of higher lows and higher highs
Each consolidation period (wedge) has been followed by robust expansion
Primary trend remains strongly bullish with price well above major moving averages (implied)
Each breakout has established a new support level at the previous resistance
Projection Based on Historical Pattern:
Given the stock's history of successful wedge breakouts:
The measured move projection from this breakout suggests a potential target in the ₹2,400-2,600 range
The stock could reach new all-time highs if the pattern's reliability continues
Previous breakouts have generally resulted in 20-30% moves from the breakout point
Key Levels to Watch
Immediate Resistance: ₹2,399.00 (all-time high)
Support: ₹1,950-2,000 (previous wedge upper boundary, now potential support)
Secondary Support: ₹1,800 (previous consolidation level)
Conclusion:
Shriram Pistons & Rings demonstrates a remarkably consistent pattern of wedge breakouts that have reliably preceded significant price advances. Today's powerful breakout continues this technical signature, suggesting the potential for further upside if historical pattern reliability maintains.
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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.
