Pattern Formation: MRF Ltd. has been forming a cup-and-handle pattern over the past several months, indicating a bullish continuation. The stock has successfully tested the key Fibonacci retracement levels and is now moving towards potential breakout zones.
Key Resistance Levels:
Support Levels:
Volume Profile & RSI:
Outlook: If MRF Ltd. breaks out of the ₹144,045 resistance level, it could see a swift move towards ₹161,250, a potential gain of 16.5% from current levels. Traders should look for strong volume confirmation during the breakout for additional momentum.
Risk Factors: If the stock fails to sustain above ₹133,298, there could be a deeper retracement to test lower Fibonacci levels, with downside risks towards ₹129,000-125,000.
- Cup-and-Handle Formation:
Key Resistance Levels:
- Immediate Resistance: ₹144,045 (4.26% upside) – This level aligns with the upper boundary of the wedge pattern. A breakout above this level would signal strength, confirming the end of the handle phase.
- Major Target: ₹161,250 (16.54% upside) – This represents the projected target based on the full breakout of the cup-and-handle pattern, leading towards a possible rally to the previous all-time highs.
Support Levels:
- Strong Support: ₹133,298 – This aligns with the 50% Fibonacci retracement level, where the stock has shown significant buying interest during previous dips.
- Key Fibonacci Levels: 61.8% (₹133,475) and 38.2% (₹129,121) act as pivotal zones for any pullback in case of renewed selling pressure.
Volume Profile & RSI:
- Volume Analysis: The recent volume spikes, especially during the approach to the wedge breakout, show accumulation, confirming investor confidence.
- RSI: The Relative Strength Index is approaching the 60-70 range, suggesting a healthy bullish trend without overbought conditions.
Outlook: If MRF Ltd. breaks out of the ₹144,045 resistance level, it could see a swift move towards ₹161,250, a potential gain of 16.5% from current levels. Traders should look for strong volume confirmation during the breakout for additional momentum.
Risk Factors: If the stock fails to sustain above ₹133,298, there could be a deeper retracement to test lower Fibonacci levels, with downside risks towards ₹129,000-125,000.
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.