Rounding bottom pattern in Engineers India

28 Mei

Rounding bottom pattern formed in Engineers India. After breakout, it can extend its move to 260, 290 and 300 in the mid to long term.

28 Mei

Dagangan aktif

Engineers India Ltd has recently formed a rounding bottom pattern on the chart, a classic bullish reversal pattern that suggests a shift in momentum from bearish to bullish. The key resistance level lies at ₹210-212 price zone, and a breakout above this level with strong volume will confirm the pattern.

📈 Breakout Confirmation & Retest Zone :
A decisive close above ₹212 will mark a technical breakout, putting the stock at its 8-month high. Post-breakout, a retest of the ₹205–₹210 zone is likely. If the stock takes support and consolidates in this zone, it will indicate strength and readiness for the next upward leg.

📅 Fundamental Trigger – Q4 Results :
Investors and traders should closely monitor the Q4 results scheduled for 29 May. A strong earnings report could serve as a catalyst to support the technical breakout and sustain the uptrend. Conversely, a weak result may delay or invalidate the breakout momentum.

🎯 Targets & Price Action Outlook:
- Short-term buying range: Between ₹210 and ₹215.
- Immediate target: ₹250
- Next targets: ₹290 and eventually ₹300, which may take 3–4 months to achieve if the trend sustains.
- Stop loss can be placed at ₹185.

⚠️ Key Points to Watch:
- Volume confirmation on breakout above ₹212.
- Retest and support around ₹205–₹210.
- Q4 earnings impact on price action.
- Keep a disciplined stop-loss strategy based on risk appetite.