Multi-Month Triangle Breakout Can Signal Move to ₹750+NSE:TIPSMUSIC Made a Beautiful Chart Structure Today and Breaks Free of Multi-Month Triangle Breakout and Could Signal Explosive Move to ₹750+
Price Action Analysis:
NSE:TIPSMUSIC is currently trading at ₹676.80, up 3.68% (₹24.00) today. The stock has been consolidating in a narrowing range since January 2025, forming a classic symmetrical triangle pattern. After testing the lower support multiple times around ₹580-600, the stock is now approaching the apex of the triangle and showing signs of a potential upside breakout. The recent price action shows higher lows being formed, indicating growing buying interest at lower levels.
Volume Analysis:
Volume is healthy at 319.61K shares, significantly above the average of 192.25 K. The increased participation suggests growing interest as the stock approaches a crucial decision point. Volume patterns show consistent buying support during dips to the triangle's lower boundary, while recent sessions have seen upticks in volume accompanying the move higher.
Key Support & Resistance Levels:
- Immediate Resistance: ₹720-730 zone (upper triangle boundary and previous resistance)
- Major Resistance: ₹750-760 (prior swing high from December)
- Triangle Support: ₹580-600 zone (marked with green arrows - multiple successful tests)
- Key Support: ₹560-570 (breakdown level that would invalidate the pattern)
- Dynamic Resistance: Descending trendline from November highs
Technical Patterns:
1. Symmetrical Triangle: Well-defined triangle formation since January, with converging trendlines
2. Triple Bottom: Multiple successful tests of the ₹580-600 support zone (green arrows)
3. Ascending Triangle Element: The recent higher lows suggest buyers are becoming more aggressive
4. Compression Pattern: Decreasing volatility as price approaches the triangle apex, typically before significant moves
Trade Setup - Breakout Play:
Entry Strategy:
- Primary Entry: ₹695-700 on confirmed breakout above triangle resistance with volume
- Secondary Entry: ₹680-685 on any pullback to current levels (anticipatory entry)
Targets:
- First Target: ₹730-735 (immediate resistance)
- Second Target: ₹760-770 (measured move from triangle base)
- Final Target: ₹800-820 (extension target based on triangle height)
Risk Management:
- Stop Loss: ₹640 (below recent swing low and triangle support)
- Tight Stop: ₹660 for aggressive traders
- Position Size: Maximum 2% of portfolio at risk
Alternative Setup - Continuation Play
For conservative traders waiting for confirmation:
- Entry: ₹735-740 (after clearing first resistance zone)
- Stop Loss: ₹695 (below breakout level)
- Targets: ₹780, ₹820, ₹860
Risk-Reward Analysis:
- Primary Setup R:R = 1:2.5 (Entry ₹690, Stop ₹640, Target ₹770)
- The triangle pattern suggests a potential 15-20% move upon breakout
- A failed breakout risk exists if volume doesn't confirm the move
Key Catalysts to Watch:
The stock appears to be in the final stages of its triangle consolidation. A breakout above ₹720 with strong volume (above 400K shares) would confirm the pattern and likely trigger momentum buying. Conversely, a breakdown below ₹640 would invalidate the bullish setup and could lead to a test of ₹560-570 levels.
The decreasing volatility and tightening price range suggest a significant move is imminent. Given the multiple successful tests of support and the overall market context, the probability favours an upside resolution, making this an attractive risk-reward setup for both swing and position traders.
Traders should monitor volume closely on any breakout attempt, as genuine breakouts from triangle patterns typically require volume confirmation to sustain the move.
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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.
