Jewellery Stock Makes a Strong Comeback - Is Another Breakout Brewing?

Stock to Watch: Bluestone Jewellery and Lifestyle (BLUESTONE)

Rounding Pattern & Breakout
Bluestone Jewellery and Lifestyle spent nearly seven months, from November through June, carving out a classic rounding bottom (saucer) formation after its sharp fall from the 2025 highs. Price gradually curled higher through this base, and in July it broke out decisively above the Rs 600-620 zone. The rally accelerated fast, running all the way to Rs 920 by August on heavy volume - a textbook confirmation that accumulation had quietly built up during the rounding phase.

Retracement & Support Holding
After that steep run-up, the stock naturally cooled off and retraced back toward the Rs 766-800 zone, which is the same horizontal level that had earlier capped price before the breakout. This pullback tested old resistance-turned-support, and buyers stepped in right around there instead of letting the stock slip further. That kind of clean retest and bounce is exactly what you want to see after a strong breakout - it shows the move wasn't just a one-off spike.

Momentum Returns - Key Levels That Decide the Next Move

Now closing at Rs 842.75, up 4.7 per cent, the stock is showing renewed buying interest as it climbs back above its 20-EMA (Rs 810.58) and 50-EMA (Rs 746.79), both curling upward again. On the support side, Rs 766 (the old resistance-turned-support) remains the key level to hold, followed by the 50-EMA near Rs 746 as a deeper cushion. On the resistance side, Rs 848 (Friday’s high) is the first hurdle, with Rs 920 being the major level to watch for a fresh breakout attempt. The RSI at 60.08, above its signal line of 55.75, supports this renewed momentum without being overbought yet, leaving room for further upside as long as Rs 766 support holds.

Disclaimer: The article is for informational purposes only and not investment advice.