Bharti Airtel forms a bearish price chart pattern! Wait, What?!
After falling from its high of Rs 518.50 made on November 03, 2017, it made a low of Rs 254.15 in October 2018. Since then, it is on an uptrend. Though, it faced a free fall in the month of March 2020 but respected its uptrend line. However, in this rising trend, it is likely to form an inverted cup & handle pattern, which is a bearish price chart pattern.
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Key takeaways:
1. Forming an inverted cup & handle price pattern in a strong uptrend.
2. Level of Rs 530 is acting as a crucial resistance.
3. Trade only if the upward channel gives a southward breakout.
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This price chart pattern can be seen on the daily timeframe. At first, you can see a strong uptrend, where the price has tested a lot of times. Further, in this uptrend, you may see the formation of an inverted cup & handle price pattern. Moreover, it is currently moving in a channel (handle) but in order to complete this formation, it needs to break out southwards from the channel. Having said, the uptrending channel is with low volumes, depicts a weak uptrend.
Therefore, swing breakout traders should add this stock to their watchlist and wait for it to break the channel on the downside. Further, day traders should wait for the price rejection on the resistance line of the channel.
Furthermore, investors in mutual funds having a high allocation to Bharti Airtel, should not exit in panic as mutual funds are quite diversified and the highest allocation to Bharti Airtel in any fund is not more than 12 per cent.
Disclaimer:
This article is just for understanding purposes and should not be considered as a recommendation. Readers are advised to do their own research before making any investment decision. Further, DSIJ and its authors are not responsible for any kind of losses caused.