LIC Housing Finance - Cup & Handle on Weekly Chart

6 Haz 2021

LIC Housing Finance was in a downtrend. The counter tested the bottom level of Rs.185.25 in March 2020. Thereafter the counter experienced the gradual recovery and reached the price level of Rs.487.40 in February 2021. This price level was the major resistance for the counter. This resistance was tested twice in the past in November 2019 and January 2020 and could not be breached. After testing the resistance level for the third time in February 2021 there was a pull back to the level of Rs. 372.70. The price started rising again from this level and finally breached the major resistance line on weekly chart on Friday 5th June 2021. On this breakout the price closed at Rs.530.20 with a massive rise in volume. This formed the Cup & Handle price pattern on the chart. Here I expect the price target of Rs.790 in a time period of about 6 months from now. I suggest the stop loss at Rs.487 giving the risk-reward ratio of 1:6.
NOTE: This Idea is an attempt to predict the future price movement. Investment based on this idea shall be solely at the risk of the investor.