CDSL cmp 1322. Stock price broke out of a daily cup and handle pattern above 1260, marked in solid blue line. The breakout happened with a big bull candle with high volumes. Next day stock price gapped up between 1291 – 1308, and hit a swing high of 1430, before correcting along with the brief midcap and small cap sharp correction. It went down, retested the gap area, and reversed from there. It now seems to be stabilising above the breakout zone and gap up zone.
Note smaller breakouts in dotted blue lines, which could have provided early entry points for someone closely tracking the stock and its chart.
On daily chart, on candlesticks, stock price has formed a candlestick pattern called homing pigeon, which often signals reversal. Today the volumes have also fallen drastically as compared to preceding few trading sessions. Next couple of days should provide an idea on whether this candlestick pattern plays out or not.
The pattern target of cup and handle ( if pattern plays out ) breakout are close to 1600.
disc: invested as a technical bet. ( not a recommendation , anyone contemplating any buy/sell should do their own diligence. )
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