CDSL Bullish Cup and Handle Breakout Confirm

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Late Published "Only for Educational Purpose"

📊 Pattern Formation: Bullish Cup and Handle
CDSL has officially broken out of a Bullish Cup and Handle chart pattern, signaling a strong technical breakout with high probability of an extended uptrend. This classic bullish continuation pattern took 4 months to form, indicating a well-developed structure with strong base formation.

  1. Neckline Resistance: ₹1380
  2. Breakout Confirmation: Occurred with rising volume, confirming buyer participation
  3. Handle Formation: Characterized by a pullback on declining volume, a textbook sign of weak selling pressure and consolidation before a breakout


📈 Volume & Momentum Indicators
✅ Volume Surge: Confirmed breakout with significant increase in volume — a clear sign of institutional buying
✅ RSI (Relative Strength Index): Currently above 60, indicating strong bullish momentum and room for further upside
✅ Price > 200 EMA: Signals that CDSL is in a confirmed long-term uptrend; the price holding above the 200-day exponential moving average is a strong bullish sign

🎯 Price Target Calculation – Cup and Handle Measurement Rule
Measurement Rule Target:

📌 Target Price = Neckline + Depth of Cup
  • Neckline: ₹1380
  • Bottom of Cup (approx.): ₹1180
  • Cup Depth = ₹1380 - ₹1180 = ₹200
  • ➡️ Projected Target = ₹1380 + ₹200 = ₹1580

🛡️ Stop-Loss (Risk Management)
Choose between Conservative and Aggressive exit strategies:
  1. Conservative SL: Below the lowest low of the handle (approx. ₹1290)
  2. Aggressive SL: Below the breakout candle low (approx. ₹1345)

🔥 Trending Takeaways
CDSL is exhibiting a bullish breakout setup with volume confirmation, strong RSI, and price above 200 EMA. This combination often precedes explosive price action and potential multi-week rally.

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