Technical Analysis Report: SMS Pharmaceuticals Ltd1. Bullish Flag with Pole (June–July 2024)
Bullish Flag with Pole: A continuation pattern formed after a strong upward price move (the pole), followed by a short-term consolidation (the flag), signaling the potential for another breakout upward.
Price Action: Strong impulsive rally formed the flagpole, followed by a tight consolidation forming the flag 🚩.
Breakout: Confirmed with a high-volume breakout to the upside.
Target: Achieved a massive 40% gain in under a month.
Analysis: A textbook bullish continuation pattern; traders capitalized on early entry post-breakout.
2. Distribution Phase (August–October 2024)
Distribution Phase: A sideways trading range after an uptrend where smart money or institutions start offloading their holdings. Typically a precursor to a market reversal or downtrend.
Market Structure: After the sharp uptrend, price entered into a horizontal range.
Phase Characteristics: Low volatility, repeated rejections at resistance, high volume on down days—signs of distribution.
Interpretation: Institutions likely booking profits, signaling a potential trend reversal.
Trader Sentiment: Shifted from bullish to neutral/bearish.
3. Triple Top Formation (Within Distribution Phase)
Triple Top Pattern: A bearish reversal pattern marked by three failed attempts to break above a resistance level, indicating weakening momentum and a potential downtrend.
Resistance Level: Same peak tested three times without breaking.
Breakdown: Confirmed after the third top with a decisive drop.
Target: Achieved a "30% downside" move via "short selling", all within a month.
Insight: Classic reversal pattern, effectively timed with distribution.
4. Bearish Flag with Pole (During Triple Top Breakdown)
Bearish Flag with Pole: A continuation pattern during a downtrend. It starts with a sharp decline (pole), followed by a minor upward consolidation (flag), suggesting further downside.
Formation: Sharp decline (pole) followed by a brief upward consolidation (flag).
Breakdown: Continuation to the downside, achieving projected target.
Target: Fully achieved within the same downtrend cycle.
Conclusion: Reinforced the bearish sentiment and amplified the down move.
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5. Accumulation Phase + Triple Bottom (December 2024–April 2025)
Accumulation Phase: A market phase where a stock trades in a range after a downtrend, as buyers (often smart money) gradually build positions, typically leading to a bullish reversal.
A Triple Bottom is a bullish reversal chart pattern that forms after a downtrend, marked by three equal lows indicating strong support and a potential trend reversal to the upside.
Phase: 5-month Accumulation Phase
Pattern: Triple Bottom during this period indicated strong support and buyer presence.
Breakout: Occurred with a bullish breakout post third bottom.
Target: 20% upside achieved within a month post-breakout.
Observation: Long-term investors and smart money potentially entering positions.
6. Rounding Bottom in Progress (May 2025)
Pattern: Rounding Bottom (Still Forming)
Current Price Action: Gradual curve formation with decreasing volume on the left and increasing volume near the neckline— a bullish sign.
Expectation: Anticipated upside breakout in the coming days.
Outlook: If confirmed, this could mark the start of a new bullish cycle.
📌 Summary:
SMS Pharmaceuticals Ltd. has shown a textbook series of technical patterns—from trend continuations to reversals, distribution to accumulation, and now a potential new uptrend. Each phase was actionable, with clear breakout/breakdown points and well-achieved targets.
