Broadening Wedge Formation in Apollo Hospitals (NSE: APOLLOHOSP)

Implications of the Pattern:

• Market Psychology:
  The expanding triangle reflects growing uncertainty and volatility, often seen during periods of fundamental shifts or major market news.
  
• Breakout Potential:
  The pattern typically resolves in the direction of the prevailing trend (upward in this case, given the stock's long-term ascending channel).
  

Current Scenario:

• The stock is currently near the lower boundary of the triangle, aligning with the long-term ascending channel support. This creates a dual-support zone, increasing the probability of a bounce.
  
• RSI in Oversold Zone:
  Oversold conditions combined with a strong support zone suggest a likely reversal.
  

Trading Strategy

• Entry Point:
  Enter near the current support zone (above ₹6,750).
  Ensure the stock holds above ₹6,600 to confirm the support remains intact.
  
  
• Target Levels:
  Target 1: ₹7,400 (mid-point of the expanding triangle and previous resistance).
  Target 2: ₹7,777 (upper boundary of the channel and triangle).
  
  
• Stop Loss:
  Place a stop loss below ₹6,600 to protect against a breakdown.
  
  
• Breakout Strategy:
  If the stock breaks out of the upper boundary of the expanding triangle with high volume, it could accelerate toward ₹8,000+ levels.