DLF In Focus
In today’s chart, we bring you Gurugram-based real estate major DLF, analyzed by Sacchitanand Uttekar of Tradebulls.
What Do DLF’s Charts Indicate?
Since October 24, DLF had been in a sustained downtrend, forming a sequence of lower highs and lower lows. However, the recent breakout from an inverse head and shoulders formation has signalled a clear reversal in trend.
Inverse Head & Shoulder
The inverse head and shoulders is a classic bullish reversal pattern in technical analysis, typically indicating a shift from a downtrend to an uptrend, suggesting that bearish momentum has weakened and buying interest is gaining strength. The breakout above the neckline, accompanied by rising volume, serves as a strong confirmation of this reversal.
In DLF’s case, the daily chart shows a textbook formation of the pattern. Further strengthening the bullish outlook is the ADX (Average Directional Index) crossing above the 25 level, which confirms the emergence of a strong uptrend.
Importantly, the right shoulder has formed higher than the head, effectively invalidating the previous bearish structure. The stock has already seen a notable price run-up post-breakout, reinforcing the reliability of the pattern.
Any dips from current levels should be viewed as buying opportunities, with a pattern target of ₹840 and a stop loss below ₹710.
Shares of DLF ended little changed on Thursday at ₹776.7. The stock has risen 13% in the last one month.
(Edited by : Juviraj Anchil)
