Rising Wedge Formation | Bullish Engulfing💹 BSE Ltd (NSE: BSE)
Sector: Financial Services | CMP: ₹2,678.30 | View: Rising Wedge + Bullish Exhaustion Setup
📊 Price Action:
BSE Ltd witnessed a powerful uptrend from ₹2,020 to ₹2,718, supported by heavy institutional participation and strong price momentum.
The stock recently posted a 20-day volume breakout, followed by a bullish engulfing candle, signaling strong buying strength at lower levels.
However, post this rally, the price structure has developed into a Rising Wedge pattern, indicating momentum exhaustion and potential short-term consolidation.
The recent rejection near ₹3,030 swing high suggests supply pressure building at upper resistance zones, aligning with the wedge’s narrowing structure.
💼 HNI Trade Levels (STWP Setup):
Aggressive Entry: ₹2,678–₹2,718 | Stop Loss: ₹2,425
Low-Risk Entry: ₹2,595 | Stop Loss: ₹2,415
The near-term trend remains upward but stretched.
HNI and swing traders should monitor the ₹2,595–₹2,650 zone closely — this area represents both the 61.8% Fibonacci retracement and the wedge support base.
Sustaining above it will keep the setup active; a breakdown below ₹2,595 could shift the structure into a corrective phase.
📉 Chart Pattern Analysis – Rising Wedge (Bearish Reversal Bias):
The current structure represents a Rising Wedge formation, identified by two upward-sloping, converging trendlines.
This pattern often develops after strong rallies, marking the final leg of an existing uptrend before a corrective phase begins.
In BSE’s case, the wedge indicates that buying momentum is weakening as the range tightens, while volumes remain high — a sign of profit booking within strength.
The confirmation trigger for reversal would be a breakdown below ₹2,595. Until then, the structure remains short-term bullish but with an elevated risk of pullback.
A breakdown could potentially extend retracement toward ₹2,525–₹2,450.
📈 STWP Trading Analysis:
Entry: ₹2,678–₹2,718 | Stop Loss: ₹2,425.50
The breakout candle displayed exceptional strength with a 20.3M volume surge against a 5.65M average, confirming institutional footprints and momentum expansion.
The price is currently sustaining above its short- and mid-term EMAs, with trend alignment visible across the daily and weekly timeframes.
Holding above ₹2,644–₹2,595 (critical Fibonacci and structural zone) will maintain the bullish bias, keeping the setup active toward ₹2,783–₹2,888 in the near term.
A sustained close above ₹2,888 could further extend the move toward ₹3,030, whereas a breakdown below ₹2,595 may trigger pattern invalidation and shift bias toward ₹2,525–₹2,450 support zones.
📈 Candlestick Pattern – Bullish Engulfing at Apex:
A Bullish Engulfing Candle formed on 4 Nov 2025, initiating the final upward leg from ₹2,443 to ₹2,718.
While it reflected strong buying enthusiasm, the placement of this candle near the apex of the wedge signals possible buyer exhaustion.
Such engulfing candles late in a trend often act as final thrust candles, marking distribution zones rather than breakout initiation.
This makes it essential for traders to track whether follow-up candles sustain strength or fade under resistance.
📏 Fibonacci Analysis:
From swing low ₹2,021.50 to swing high ₹3,030.0:
61.8% retracement @ ₹2,644 → Key structural support.
50% retracement @ ₹2,525 → Ideal pullback level.
38.2% retracement @ ₹2,406 → Deeper retracement aligned with wedge base.
The stock currently trades near the 61.8% golden zone, making ₹2,595–₹2,644 a crucial area for short-term trend control.
A close below this range may invite a deeper retracement, while sustained strength above ₹2,678 could revive momentum toward ₹2,888–₹3,030.
🧭 STWP Support & Resistance:
Resistances: ₹2,783 | ₹2,888 | ₹3,059
Supports: ₹2,595 | ₹2,525 | ₹2,406
The ₹2,980–₹3,020 range acts as a weak resistance zone, where mild profit booking or supply pressure may emerge if momentum continues upward.
On the downside, the ₹2,020–₹2,070 belt continues to serve as a strong structural support zone, backed by historical accumulation and institutional demand footprints.
📊 STWP Volume & Technical Setup:
Today’s volume stood at 20.3M shares vs 5.65M average, signaling heavy institutional activity and potential position rotation post-breakout.
RSI remains elevated near 69, while Stochastic (90) suggests short-term overbought conditions — hinting at a likely consolidation phase ahead.
MACD continues to stay in the bullish zone but shows flattening momentum, consistent with the wedge’s tightening structure.
Trend Direction: UPTREND (Weakening) | Volume Confirmation: High with Distribution Bias
🧩 STWP Summary View:
Final Outlook:
Momentum: Strong | Trend: Bullish | Risk: High | Volume: High
BSE Ltd remains structurally bullish but technically stretched after a steep rally and volume breakout. The Rising Wedge formation, combined with the Bullish Engulfing near the top, reflects a maturing uptrend with signs of short-term exhaustion. Holding above ₹2,595 keeps the pattern valid, but traders should remain cautious of volatility and potential profit booking as the structure nears completion.
⚠️ Disclosure & Disclaimer – Please Read Carefully
This post is created solely for educational and informational purposes and should not be interpreted as investment advice or a buy/sell recommendation.
I am not a SEBI-registered investment adviser. All views are based on technical analysis and publicly available market data.
Trading involves significant risk. Always apply risk management, follow position sizing discipline, and consult a SEBI-registered financial advisor before acting on any trade.
Position Status: No active position in (BSE) at the time of this analysis.
Data Source: TradingView & NSE India
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