Reversal pattern is when stock bottoms out, stays in range for sometime and then shows first signs of up move which is fundamentally backed by bottoming out of pessimistic sentiments and quarterly resulting suggesting worst over with some greenshoots
Post Covid, we have seen pharma index beating NIFTY. However, last few months, pharma has been stagnant with respect to NIFTY. Idea was to check comparative relative strength of Pharma vs NIFTY and identify signs of next pharma sector run. The two blue lines highlighted looks like the base and top formation when pharma outperforming and underperforming NIFTY
