Can the Nifty Auto Index breach all-time high?

Nifty Auto Index nearing its all-time high of 12,108.

Nifty Auto Index is currently trading at the 11,797 level. The last time when the index was trading at such levels was in April 2018. And this level is quite near to its all-time high level of 12,108. Surprisingly, the Nifty Auto index is declining from December 2017 till March 2020. Post which the indices across the board began to surge.  

However, this run was paused in February 2021 when the index began to consolidate in a range, before it finally broke out of consolidation in October 2021. The price chart pattern it formed then was a symmetrical triangle pattern. This can be seen in the below weekly chart of the Nifty Auto Index. 

A symmetrical triangle pattern is nothing but a bullish continuation chart pattern (if the price breaks out from the upper slope of the triangle) where two trend lines connect to become support and resistance lines. These trend lines roughly converge at an equal slope.  

We through our article titled “Is it right time to invest in funds with high exposure to auto sector?” which was published on November 23, 2020, had covered the action that was likely to happen in the index as it had formed inverted head and shoulder pattern.  

Looking at the technical indicators such as Relative Strength Index (RSI), which is currently at 72.88 level and Moving Average Convergence Divergence (MACD) that shows a positive crossover between signal and MACD line in the positive territory, then they are indeed supporting the bullish move of the index. However, Bollinger bands is suggesting a pullback from current levels.