Capital Goods Stock Surges Above Key Resistance - Cup-and-Handle Signals Fresh Upside
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The stock breaks above the Rs 1,160–1,170 resistance zone, completing a cup-and-handle formation with improving volume. Trading above the 20 and 50 EMAs, with RSI near 69, supports strong bullish momentum, while Rs 1,160–1,150 now acts as the key support zone.
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Stock to Watch: Construction-equipment-ltd-132762">ACTION CONSTRUCTION EQUIPMENT (ACE)
Cup-and-Handle Pattern Gives a Fresh Breakout
Action Construction Equipment has formed a clear cup-and-handle pattern on the daily chart. After a long-rounded recovery from the Rs 750–800 zone, the stock moved back towards the earlier resistance around Rs 1,160–1,170 and formed a short handle. The latest strong green candle has pushed the price to Rs 1,229.20, breaking above this resistance and completing the pattern with a noticeable improvement in buying interest.
Price Trades Above Key EMA Support
The breakout is supported by the stock trading above its important EMAs. The 20 EMA is around Rs 1,149, while the 50 EMA is near Rs 1,097, giving the current move a healthy support base. The immediate support is now placed around Rs 1,160–1,150, which was the earlier resistance zone. Below this, Rs 1,097 can act as the next important support if some profit booking appears after the sharp move.
RSI Shows Strong Buying Momentum
The RSI has moved up to around 69.4, reflecting strong momentum and bringing the indicator close to the overbought zone. Volume is also showing an improvement during the breakout, adding strength to the price move. With the cup-and-handle breakout holding above Rs 1,160–1,170, the stock can remain in focus for further upside, while sustained trading above this breakout zone would keep the current technical structure positive.
Disclaimer: The article is for informational purposes only and not investment advice.