This Stock Triggers a Powerful Pennant Breakout — What Comes Next?

Stock to Watch: Data Patterns (DATA PATTERNS)

Data Patterns Breaks Out of Bullish Pennant Formation

Data Patterns has been forming a bullish pennant on the daily chart, with price squeezing between a falling resistance line and a rising support line. That consolidation has now resolved to the upside — the stock broke above the pennant resistance with a strong bullish candle and closed at Rs 4,932.30. What makes this breakout more convincing is the noticeable jump in volume alongside it, which usually points to fresh buying interest rather than a weak, low-conviction move.

Key Support and Resistance Levels

On the support side, Rs 4,800–Rs 4,820 is the level to watch first — this was resistance earlier and should now act as support after the breakout. If that gives way, the rising pennant trendline along with the Rs 4,600–Rs 4,650 zone offers the next cushion below. On the upside, Rs 5,000 comes in as the immediate psychological hurdle, and beyond that, Rs 5,100– Rs 5,200 is the next resistance band.

EMA and RSI Setup Remain Positive

The stock is holding above all its major EMAs — 9-EMA, 21-EMA, and 50-EMA — which keeps the trend looking firmly positive. RSI is at around 63.5, comfortably above the neutral 50 mark and reflecting healthy momentum without being overheated. Between the pennant breakout, the volume support, the EMAs stacking up nicely, and RSI backing the move, the overall setup still favours more upside from here.

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