Sun Pharma spent months moving sideways inside a clean contracting triangle. Think of this pattern as a compressed spring gathering energy. The price finally broke out of this compression, and it confirmed the move with a massive surge in trading volume. This large volume spike is important because it shows big institutional players were actively buying the breakout, rather than it being a temporary retail trap.
Current Structure and Fibonacci Retracement
After hitting a peak of 1,916.60, the stock did exactly what a healthy market should do: it took a quick breath. The pullback stopped right at 1,765.10, which is the exact 50% Fibonacci retracement level of the breakout move.
Buyers stepped in to defend this middle ground perfectly. To add to this, the Weekly RSI is resting comfortably at 57.54. This means the momentum is clean and has plenty of open room to run upward without any overbought exhaustion.
The Two-Way Game Plan
Because the market loves to surprise anyone who gets too comfortable, we always map out two distinct paths.
Disclaimer: This post is for educational purposes only and is not financial advice. I am not a SEBI-registered analyst. Please do your own research and manage your risk carefully.
Current Structure and Fibonacci Retracement
After hitting a peak of 1,916.60, the stock did exactly what a healthy market should do: it took a quick breath. The pullback stopped right at 1,765.10, which is the exact 50% Fibonacci retracement level of the breakout move.
Buyers stepped in to defend this middle ground perfectly. To add to this, the Weekly RSI is resting comfortably at 57.54. This means the momentum is clean and has plenty of open room to run upward without any overbought exhaustion.
The Two-Way Game Plan
Because the market loves to surprise anyone who gets too comfortable, we always map out two distinct paths.
- Primary Scenario (The Bullish Push): As long as the current support floor holds, the stock is structurally ready to launch its next major upward leg.
- Alternate Scenario (The Invalidation Line): A weekly candlestick close below 1,756.80 completely invalidates this bullish setup.
Disclaimer: This post is for educational purposes only and is not financial advice. I am not a SEBI-registered analyst. Please do your own research and manage your risk carefully.
WaveXplorer | Elliott Wave insights
📊 X profile: @veerappa89
📊 X profile: @veerappa89
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
WaveXplorer | Elliott Wave insights
📊 X profile: @veerappa89
📊 X profile: @veerappa89
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.