M_MFIN - Cup and Handle -breakout -Retest -Daily
The chart of M&M Financial Services Ltd (M&MFIN) indicates a classic cup and handle pattern forming, which is a bullish continuation signal typically pointing to a potential breakout.
Key Observations:
Cup and Handle Formation:
The chart shows a rounded "cup" shape between mid-2023 and mid-2024, followed by a smaller consolidation resembling the "handle."
This pattern suggests a period of accumulation, where selling pressure decreases, and a bullish breakout could follow.
Resistance and Breakout Level:
The breakout point from the cup's rim is around ₹314, as highlighted.
The stock appears to have broken out of this resistance level, now trading above ₹340.
Measured Move Target:
Based on the pattern's depth, the chart marks a target price around ₹391.15, representing a potential 24.68% gain from the breakout level.
The target is calculated by projecting the depth of the cup upward from the breakout point.
Volume Activity:
The volume profile indicates a healthy increase as the stock moves up, supporting the breakout. Volume typically spikes during breakouts from such patterns, confirming the validity of the move.
In summary, if M&M Financial Services sustains its move above ₹314 with increasing volume, the next target of ₹391 becomes achievable. However, watch for potential pullbacks or false breakouts, which are common with this pattern.
Key Observations:
Cup and Handle Formation:
The chart shows a rounded "cup" shape between mid-2023 and mid-2024, followed by a smaller consolidation resembling the "handle."
This pattern suggests a period of accumulation, where selling pressure decreases, and a bullish breakout could follow.
Resistance and Breakout Level:
The breakout point from the cup's rim is around ₹314, as highlighted.
The stock appears to have broken out of this resistance level, now trading above ₹340.
Measured Move Target:
Based on the pattern's depth, the chart marks a target price around ₹391.15, representing a potential 24.68% gain from the breakout level.
The target is calculated by projecting the depth of the cup upward from the breakout point.
Volume Activity:
The volume profile indicates a healthy increase as the stock moves up, supporting the breakout. Volume typically spikes during breakouts from such patterns, confirming the validity of the move.
In summary, if M&M Financial Services sustains its move above ₹314 with increasing volume, the next target of ₹391 becomes achievable. However, watch for potential pullbacks or false breakouts, which are common with this pattern.
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