GAIL weekly bar chart. It shows a dark blue resistance line which offered resistance at around 115 for multiple times in last 2 years. Finally today stock price managed to cross this important resistance and close above it. We need to watch out for the all important weekly close.
Depth of the pattern ranges from 45 ( nearer to Covid lows) or slightly higher bottom of 55, to 115 ( resistance faced multiple times) Many analysts calculate the range ( 115-55 = 60) and add to breakout point ( 115 + 60 = 175) to arrive at potential targets.
A horizontal channel drawn on chart shows consolidation between 85 to 115 for nearly 2.5 years. ( extending from Jan 2021 to current time frame)
However since the chart is weekly chart, time taken to achieve target can range a few months to year or more. disc: bought recently as disclosed in earlier post)
This is one of the most interesting chart for me as it was on my watchlist since a long time because of the long consolidation between 85-115. I want to observe first hand how things play out from these kind of prolonged tight consolidations.
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