ready to breakThe chart for Bhartiya International (NSE) is a monthly timeframe chart. Let's break it down and analyze it step by step.
### General Observations:
1. Resistance Breakout:
The price had previously formed a resistance around the **₹638 level**, which was tested multiple times between **2016 and 2018**. However, in those attempts, the price failed to break out.
In **2024**, the price has decisively broken above this level. A breakout like this, especially on higher volume, suggests strong bullish momentum.
2. **Volume Analysis (Highlighted Circle)**
There is a noticeable increase in volume at the beginning of 2024, right before the breakout, which is often a confirmation of a strong trend reversal. The increased volume shows that institutional or significant investor participation is present, supporting the upward movement.
The subsequent monthly candles also show significant gains, supported by decent volume, which adds further confirmation to the bullish outlook.
### Candlestick Patterns:
1. **2024 Candles:**
The latest candle (September 2024) is a strong bullish candle with no upper wick, indicating that bulls dominated the session, closing near the high of the month.
Prior months in 2024 show a series of higher highs and higher lows, a classic uptrend pattern.
2. **Long-Term Trend:**
The stock was in a prolonged downtrend or consolidation from **2018 to 2020**, followed by a recovery in **2021**.
After some consolidation around the **₹337 level** (acting as previous resistance turned support), the stock began its upward movement starting around **late 2023**.
### Chart Patterns:
1. Cup and Handle Formation:
There seems to be a potential **Cup and Handle** formation spanning from **2016 to 2023**:
The price peaked in **2016** around **₹638**, followed by a prolonged correction down to **₹85** (forming the cup base) and eventually moving back up to the resistance level.
The **handle** was relatively short and formed in early **2024**, leading to a breakout.
This pattern is typically bullish and often leads to strong upward momentum post-breakout.
### Possible Targets:
**Target 1 (Near-term):**
After the breakout above ₹638, the next potential target can be projected using a Fibonacci extension or by measuring the height of the cup (from ₹85 to ₹638, i.e., approximately ₹553) and adding this to the breakout point.
This gives a near-term target around **₹1200**.
**Target 2 (Long-term):**
If the breakout sustains and the stock continues its uptrend, we could see much higher levels in the longer term. A next major psychological level would be around **₹1500** or higher.
### Support Levels (Stop-Loss):
**Immediate Support:**
₹638, the previous resistance, now acts as immediate support. If the price closes below this level on a monthly basis, it may signal weakness.
**Major Support:**
₹337 is a strong support level that previously acted as resistance. In case of a significant market correction, this level could be tested.
### Summary:
**Bullish Bias:** The stock has broken out of a long-term resistance supported by strong volume, indicating bullish momentum.
- **Target:** near-term target could be around ₹1200, with potential for even higher levels over the long term.
- **Stop-Loss:** A conservative stop-loss can be set just below ₹638, or for a larger safety margin, below ₹337.
This stock seems to be in the early stages of a breakout, and the chart is giving clear bullish signals. However, regular monitoring is required, especially for potential corrections or changes in market conditions.
