United Spirits Ltd Breaks Out from Inverse Head & Shoulder Pattern
United Spirits Technical Breakout
United Spirits Ltd, a part of the breweries industry, recently broke out from an inverse head & shoulder pattern on the daily charts. This breakout has created an opportunity for the stock to move higher.
United Spirits Short-Term Trading Opportunity
Experts suggest that short-term traders can consider buying the stock with a target price range of Rs 1,640-1,775 within the next 3-4 weeks.
United Spirits Pattern Analysis
The stock reached a record high of Rs 1,648 on September 24, 2024, but lost momentum. After finding support above the 50-DMA in October, it drifted towards the 100-DMA on the daily charts. However, the stock bounced back in November after consolidating around the 100-DMA.
Inverse Head & Shoulders Pattern
The breakout from the inverse head and shoulders pattern is a bullish technical signal that suggests a potential reversal from a downtrend to an uptrend. This pattern is characterized by three troughs – the left shoulder, the head, and the right shoulder.
Technical Indicators
The stock is currently trading above various short and long-term moving averages on the daily charts. The daily RSI is at 64.4, indicating positive momentum. The daily MACD is also above its center and signal line, which is a bullish indicator.
Expert Opinion
According to Kkunal V. Parar, Vice-President of Technical Research and Algo at Choice Broking, the stock has shown a bullish trend with the breakout from the inverse head & shoulder pattern. He also highlighted the formation of a Higher Top, Higher Bottom structure on the weekly chart, suggesting further upside potential.
Recommendation
Based on the technical analysis, experts anticipate an upside move towards 1640–1775 levels with a stop loss at 1460. It is important to note that these recommendations are the experts’ own views and do not represent the views of Narayan Ventures.
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