Technical View:
Alkem is showing a classic Cup & Handle pattern on the daily chart. The stock has formed a rounded base between ₹4,400 and ₹5,400, consolidating after a healthy recovery from its earlier downtrend. Recently, it has created a mini-handle near resistance, signaling that buyers are absorbing supply before a potential breakout.
Price Action: Trading near ₹5,448, close to its recent swing highs.
Moving Averages: Price is above short-term and medium-term moving averages, showing bullish alignment.
Volume: Breakout attempts have been supported by improving volumes, confirming buyer strength.
Relative Strength (RS): RS vs Nifty has turned positive after months of underperformance, suggesting sector rotation in favor of Pharma.
Pattern Implications:
Risk Factors:
Pharma sector is volatile; regulatory news (FDA observations, approvals) can impact sharply.
Stop Loss: A close below ₹5,250 (handle support & short-term MA zone) would negate the pattern.
Trading Strategy:
Entry: On breakout above ₹5,550 with volume.
Target: ₹6,000–₹6,200 (medium term).
Stop Loss: ₹5,250 (on daily closing basis).
Conclusion:
Alkem Laboratories is at the cusp of a bullish Cup & Handle breakout. With positive relative strength, strong volumes, and a supportive pharma sector trend, the stock looks poised for an upward move. Best to track the breakout zone closely for confirmation.
Alkem is showing a classic Cup & Handle pattern on the daily chart. The stock has formed a rounded base between ₹4,400 and ₹5,400, consolidating after a healthy recovery from its earlier downtrend. Recently, it has created a mini-handle near resistance, signaling that buyers are absorbing supply before a potential breakout.
Price Action: Trading near ₹5,448, close to its recent swing highs.
Moving Averages: Price is above short-term and medium-term moving averages, showing bullish alignment.
Volume: Breakout attempts have been supported by improving volumes, confirming buyer strength.
Relative Strength (RS): RS vs Nifty has turned positive after months of underperformance, suggesting sector rotation in favor of Pharma.
Pattern Implications:
- A decisive close above ₹5,500–₹5,550 (handle breakout zone) can trigger a strong upward move.
- Measured move from the Cup formation projects potential targets towards ₹6,000–₹6,200 in the medium term.
- Fundamental Snapshot (supporting the trend):
- Strong presence in Indian pharma & exports, with leadership in anti-infectives.
- Debt-light balance sheet, stable margins.
- Pharma sector showing signs of revival, which could act as a tailwind.
Risk Factors:
Pharma sector is volatile; regulatory news (FDA observations, approvals) can impact sharply.
Stop Loss: A close below ₹5,250 (handle support & short-term MA zone) would negate the pattern.
Trading Strategy:
Entry: On breakout above ₹5,550 with volume.
Target: ₹6,000–₹6,200 (medium term).
Stop Loss: ₹5,250 (on daily closing basis).
Conclusion:
Alkem Laboratories is at the cusp of a bullish Cup & Handle breakout. With positive relative strength, strong volumes, and a supportive pharma sector trend, the stock looks poised for an upward move. Best to track the breakout zone closely for confirmation.
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Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.