Metropolis Healthcare moves in Symmetrical Triangle pattern

Considering the daily scale, the stock of Metropolis Healthcare Limited is trading in Symmetrical triangle pattern since last 21 trading sessions. As of now, price action has narrowed substantially and the price has reached near the apex point of the triangle, which indicates that the stock is likely to give a breakout in the coming days.

The symmetrical triangle can be a continuation or a reversal pattern; although, more often, it is a continuation pattern. Besides the triangle pattern, the daily chart shows that the Bollinger Bands have contracted on daily time frame, which indicates an early signal of a bigger move. In last two trading sessions, the volumes recorded were above 50-day average, which is a sign of accumulation.

Currently, the stock is trading above its 20-day EMA (1247.80), 50-day EMA (1177) and 100-day EMA (1091.60), which indicates a medium-long term uptrend. Among momentum oscillators, the 14-period daily RSI is on a rising trajectory and trading in the bullish zone. Moreover, the stochastic oscillator is also suggesting some bullish strength as %K is above the %D.

Going ahead, the zone of Rs. 1290-Rs. 1300 is likely to act as an immediate hurdle for the stock as upper trendline of Triangle pattern is placed in that region. While on the downside, the zone of Rs. 1225- Rs. 1210 is likely to provide a strong support as it is the confluence of 34-day exponential moving average and lower trendline of triangle pattern.