Aarti Industries Ltd. (NSE: AARTIIND) - Double Top Formation andOverview: Aarti Industries is currently in a critical zone, showing signs of a potential bearish reversal after forming a “Double Top” pattern near ₹765. The stock is trading at ₹573.80 and is approaching the 61.8% Fibonacci retracement level of ₹568, a key level for traders to watch.
Key Technical Indicators:
Double Top Pattern:
The stock has completed a classic Double Top formation at ₹765, a bearish reversal signal. This pattern needs confirmation, which can occur if the price breaks below ₹568, targeting ₹509.55 as the next support.
Fibonacci Retracement:
The stock has already tested the 50% retracement level at ₹605.70, failing to hold. The 61.8% retracement at ₹568 is acting as crucial support. If this level is breached, we could see a deeper correction.
Volume Spike:
A notable increase in selling volume suggests strong bearish sentiment. Watch for continued high volume to confirm a potential breakdown.
Potential Scenarios:
Bullish : If the stock consolidates and rebounds from ₹568, we could see a retest of the ₹605-₹643 zone, giving a bullish opportunity.
Bearish : A break below ₹568 could trigger a sharp decline, with the next target at ₹509.55, aligning with the completion of the Double Top pattern.
Conclusion: Traders should closely monitor the ₹568 support zone. A decisive move in either direction will provide a clear trading opportunity. Keep an eye on volume and overall market sentiment for additional confirmation.
