5 Powerful Technical Chart Patterns of This Week That You Must Study Now

Needless to say about the importance of chart patterns in trading. They act as a powerful aide when it comes to predicting the movement of an asset’s price over time. Super Traders know how to use them effectively to make their trading decisions. This is the art of visual trading everybody should try to understand.

Here are some chart patterns that smart traders have deciphered for you. They are real trades and insights that offer a way to peep into their minds.

Understanding the mind and method of smart traders only can pay the way for development.

Here are some chart patterns shared by master traders that we have carefully curated for you along with a brief analysis:

#PNCInfra: A Chart by @ProdigalTrader

pnc infra

In the image given above, careful observation of the recent range tells a story.  It’s rejecting from both the upper and lower edge of the range. There is simply too much supply on the top side and robust demand at the range bottom. The volume and momentum of bullish bars provide the necessary thrust to give a breakout.

#OberaiRealty: Equity4Life 

It’s a classic Cup & Handle Pattern BREAKOUT given by the stock in May 2021. Recently, it’s moving upward and almost on the verge of trendline breakout. The stock is trading at an all-time high and also 52 weeks high.  It can be good for 2-3 years of investing.

#TataELXSI: Brahamachary 

Tata Elxsi

This is the class of Brahamachary Ji.  A classic chart pattern for a trend follower. The visual tells the entire story. It’s so obvious that it hardly needs any explanation.

#HDFCLIFE  by @MaverickAmit01

HDFC LIFE

While explaining, Amit states that it has been a rank underperformer for a long time. It tried to break the 2600-2700 zone many times but failed. It was a zone of consistent resistance for the stock. It remained in the consolidation for 15-20 weeks. And in that period, it formed a very good base. It’s a clear rounding pattern on the weekly chart.  In the last couple of weeks, we saw some bullish momentum with good volume, and finally, it crossed the 2600-2700 resistance zone.

When you see the daily chart, #HDFCLife did not participate at all.  Now, the strong bullish candle shows the intent of the bulls to take the price forward upside.

For a detailed review, click here to watch his YouTube Channel:  Trade with MaverickAmit01

It’s a very good source of genuine trading wisdom.

# $MKRUSD and $UMAUSD by @TechCharts

Here are two altcoins you should avoid according to chart pattern configuration. These H&S top formations have formed on weekly scale price charts & if completed suggest lower prices for $MKRUSD and $UMAUSD.

#BankNifty by Chetan Panchamia @123chetanp

If you make a list of 5 Bank Nifty top traders, you will find Chetan in it. He is clearly of the view that Bank Nifty needs to cross above 38000 for a new leg of the rally to start, while 37000-38000 is a no trade zone.

We hope that you must have found this useful. Stay tuned with The Alpha Return for interesting market insights.

Also Read: Price Action Trading- Listen What Mr. Market Wants to Tell You

Vikash Kumar

An investor with more than 15 years of experience in the market. I m deeply interested in positional and momentum-based trading strategies and love learning strategies and backtesting.

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