Chart Pattern: Volatility Contraction Pattern (VCP)
The chart displays a textbook Volatility Contraction Pattern (VCP), a bullish setup popularized by Mark Minervini.
VCP is characterized by a series of tightening price swings (each dip is shallower than the previous), signaling absorption of supply and a possible explosive breakout when resistance is cleared.
The resistance zone is clearly marked near ₹13,059–₹13,100, with the price currently consolidating just below this level.
Technical Indicators:
MACD (Moving Average Convergence Divergence): The MACD is positive and appears to be crossing above the signal line, supporting bullish momentum.
Volume: The volume pattern shows contraction during pullbacks and should ideally expand significantly on breakout for confirmation.
Moving Averages: Most moving averages (MA20, MA50, MA100, MA200) are in bullish alignment, supporting the uptrend.
RSI (Relative Strength Index): RSI is at 62.12, suggesting bullish momentum but not yet overbought.
Stochastic: Overbought at 98.3, so some caution is warranted for short-term traders.
Breakout and Target Levels:
Breakout Trigger: A daily close above ₹13,100–₹13,150 with strong volume would confirm the VCP breakout.
Targets:
First Target: ₹14,068 (previous swing high and psychological round number).
Second Target: ₹15,025–₹15,200 (projected from the height of the base and marked on the chart).
These targets align with the typical VCP breakout potential, which can yield 20–100% gains over several months if volume confirms the move.
Stoploss Levels:
Recommended Stoploss: Place a stoploss just below the most recent swing low within the pattern, typically around ₹12,400–₹12,500.
This level is just below the last contraction and provides a logical risk point if the breakout fails.....
The chart displays a textbook Volatility Contraction Pattern (VCP), a bullish setup popularized by Mark Minervini.
VCP is characterized by a series of tightening price swings (each dip is shallower than the previous), signaling absorption of supply and a possible explosive breakout when resistance is cleared.
The resistance zone is clearly marked near ₹13,059–₹13,100, with the price currently consolidating just below this level.
Technical Indicators:
MACD (Moving Average Convergence Divergence): The MACD is positive and appears to be crossing above the signal line, supporting bullish momentum.
Volume: The volume pattern shows contraction during pullbacks and should ideally expand significantly on breakout for confirmation.
Moving Averages: Most moving averages (MA20, MA50, MA100, MA200) are in bullish alignment, supporting the uptrend.
RSI (Relative Strength Index): RSI is at 62.12, suggesting bullish momentum but not yet overbought.
Stochastic: Overbought at 98.3, so some caution is warranted for short-term traders.
Breakout and Target Levels:
Breakout Trigger: A daily close above ₹13,100–₹13,150 with strong volume would confirm the VCP breakout.
Targets:
First Target: ₹14,068 (previous swing high and psychological round number).
Second Target: ₹15,025–₹15,200 (projected from the height of the base and marked on the chart).
These targets align with the typical VCP breakout potential, which can yield 20–100% gains over several months if volume confirms the move.
Stoploss Levels:
Recommended Stoploss: Place a stoploss just below the most recent swing low within the pattern, typically around ₹12,400–₹12,500.
This level is just below the last contraction and provides a logical risk point if the breakout fails.....
Note
Disclaimer:This analysis is solely for educational purposes and to share my personal views. It does not constitute a buy or sell recommendation. I am not a SEBI-registered analyst or investment advisor. Please conduct your own research or consult a qualified financial advisor before making any investment decisions.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.