Long

R-0061 A Cup and Handle Pattern in Cadilla Healthcare

128
Buy above Rs 381 for a rally to Rs 425 and above that to Rs 470. Keep a stop below Rs 360. Have the willingness to hold this trade for several weeks.

On the weekly time frame (left pane) Cadila Healthcare is showing a pause just below the 50 percent retracement. The MACD oscillator is in a buy mode as weekly trend as shown by MACD histogram is above zero and in trending state. On the daily chart (right pane) we see a very well defined Cup and a handle pattern. Price is breaking out of this pattern. The MACD is giving a buy signal.

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