Stock Is Ready For A New Rally After Retest- Keep In Radar✅ Cup and Handle Pattern Formation: The stock has formed a classic cup and handle pattern over several years, a bullish continuation pattern that signifies accumulation and a potential for a strong uptrend. The handle phase appears to be nearing completion, with the stock testing the upper trendline, indicating a breakout may be imminent.
✅ Successful Retest of Breakout Level: After breaking above the long-term resistance trendline, the stock has successfully retested this level around 2900, which now acts as a strong support. This retest confirms the breakout’s validity, indicating that the stock is poised for a continued rally.
✅ Strong Momentum: The stock has shown steady growth over the years, with a consistent upward trend following each pullback. This steady increase in price, coupled with the recent breakout and retest, strengthens the bullish case for Kingfa Sci & Tec India Ltd.
✅ RSI at Support Levels: The RSI is currently at 55, suggesting that while the stock has gained momentum, it’s still far from the overbought zone. This positioning in the RSI signals room for further upside, as it indicates a healthy pullback and consolidation after the breakout.
🚨 Key Resistance and Target Zones: Based on the cup and handle pattern’s height, the immediate target lies around 3600, with a long-term potential of 4000 if the momentum continues. These levels align with previous resistance zones and provide clear milestones for investors.
🚨 Support Level: The 2900 level now serves as strong support following the successful retest. Any pullback towards this level should be viewed as an opportunity to accumulate, given the strong support and technical confirmation.
🚨 Long-Term Bullish Outlook: With the breakout from a long-standing pattern, coupled with the successful retest, Kingfa Sci & Tec India Ltd exhibits a strong bullish outlook for long-term investors. The technical setup suggests a favorable risk-reward scenario, making this stock an attractive buy for investors seeking growth potential.