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| Cipla Daily chart (Chart source: Tradingview) |
Cipla is just breaking out an inverse H&S pattern, as can be seen in the daily chart above. The breakout has also been accompanied by a bullish MACD signal, with the MACD line crossing above its signal line while being in positive territory.
The neckline of the pattern is 627.50. If the stock sustains above 627.50 (preferably an hourly closing above this level), I expect a move higher in the short-term. The width of the pattern is approximately 55 points, so the minimum price objective would be around 680-683 (55 points added to the breakout point of 627.50). Invalidation point of the pattern post the breakout confirmation (an hourly closing above 627.50) is a breach below yesterday's low of 613.
The neckline of the pattern is 627.50. If the stock sustains above 627.50 (preferably an hourly closing above this level), I expect a move higher in the short-term. The width of the pattern is approximately 55 points, so the minimum price objective would be around 680-683 (55 points added to the breakout point of 627.50). Invalidation point of the pattern post the breakout confirmation (an hourly closing above 627.50) is a breach below yesterday's low of 613.
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