KOLTEPATIL gives falling wedge pattern breakout

The stock of Kolte-Patil Developers Ltd has given falling wedge pattern breakout on the weekly time frame. This breakout was confirmed by the above 50-week average volumes. Additionally, the stock had formed a sizeable bullish candle on the breakout week, which adds strength to the breakout.

If the falling wedge pattern appears in a downtrend, it is considered as a reversal pattern. It occurs when the price is making lower highs and lower lows, which form two contracting lines. The falling wedge usually paves the way for a reversal on the upside.

The major trend of the stock is bullish as it is trading above its weekly pivot and above its long-term and short-term moving averages, i.e. 20-day, 50-day, 100-day and 200-day EMAs. The leading indicator RSI is in the bullish zone and the MACD is above zero line and signal line. The stochastic oscillator’s %K is just above the %D on the daily chart. The other volume-based indicators like OBV and Money Flow index are also very strong. Moreover, the ADX and +DI is above the -DI, which indicates positive strength in the stock.

Going ahead, it’s important for the stock to stay above the level of Rs. 230 for the bullish view, on the upside it may scale up to levels of Rs. 250-Rs 285.