"PEL is having formed a Cup and Handle pattern
*Chart Pattern Identified**:
A **Cup with Handle** formation has been identified on the daily/weekly chart of **Piramal enterprise**, signaling a potential bullish breakout. This classic continuation pattern typically leads to strong upward moves once the handle breakout is confirmed.
🔍 **Breakout Levels and Price Targets**
1. **Primary Breakout Level – ₹1275**
* This marks the neckline of the **Cup with Handle** formation.
* A confirmed breakout at ₹1275 would validate the pattern.
(based on the measured move from the depth of the cup added to the breakout point)
* Acts as a **pre-breakout resistance** or consolidation level.
* A **daily or weekly close above ₹1,275** with strong volume would indicate early momentum and buyer interest.
* **Target after this level is breached**: ₹1275 (primary breakout zone), and if sustained, an extended target of **₹1820**.
### 📌 **Technical Outlook**
| Level | Significance | Action |
| ------ | ------------------------ | --------------------------------------------------- |
| ₹1275| Cup with handle breakout | Key confirmation zone; breakout of pattern |
| ₹1820 | Extended target | Projected move after full breakout confirmation |
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### 📈 **Trade Strategy**
* **Entry Option 1**: Anticipatory buy near ₹1,275.
* **Entry Option 2**: Breakout confirmation buy above ₹1275 with higher risk-reward toward ₹1820.
* **Volume Confirmation**: Essential at 1275 levels.
* **Stop-loss**: Dynamic trailing stop-loss below handle lows or breakout support zones depending on entry.
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### ⚠️ **Risk Management & Considerations**
* Ensure confirmation via **volume expansion** and **daily/weekly close** above key breakout zones.
* Be cautious of false breakouts, especially if moves happen on low volume or during broader market weakness.
* Monitor sectoral momentum (capital goods, engineering, or mining equipment) as it may influence breakout strength.
