ESCORTS - Symmetrical triangle -Breakout -DailyThis image shows a price chart for Escorts Kubota Ltd stock,
Here's an analysis of the key elements:
1. Price Action:
- The stock has been in an overall uptrend since April.
- It formed a symmetrical triangle pattern from June to September, which it has now broken out of to the upside.
- The current price is 4,079.25 INR, up 4.88% on the day.
2. Key Levels:
- There's a significant resistance level around 4,400 INR, which was the previous high in June.
- The breakout level from the triangle pattern (around 3,920 INR) may now act as support.
3. Volume:
- There's a notable spike in trading volume coinciding with the recent price breakout, suggesting strong buying interest.
4. RSI (Relative Strength Index):
- The RSI is currently at 67.60, indicating strong momentum but not yet in overbought territory.
- There was a bullish divergence between the RSI and price from July to September, with the RSI making higher lows while price made lower lows.
5. Potential Targets:
- The chart shows a potential price target of 4,870.90 INR, which represents a 21.02% move from the breakout point.
6. Overall Outlook:
- The breakout from the symmetrical triangle, accompanied by increased volume and strong RSI, suggests a bullish outlook for the stock.
- The next major resistance to watch would be the previous high around 4,400 INR.
