Sun Pharma – Double Bottom and Trendline Test Ahead

7 set

Chart Summary
Sun Pharma’s weekly chart shows a completed W–X–Y corrective structure. Wave W bottomed near ₹1,553.05, followed by a corrective X at ₹1,851.20, and Wave Y terminating at ₹1,556.20. This final Y-leg has unfolded as an abc zigzag, respecting the larger corrective framework.

Price Action Highlights

• A potential structural double bottom has formed around the ₹1,553–₹1,556 zone, hinting at possible exhaustion of the correction.
  
• The latest candle is a hammer-like bar, suggesting demand stepped in around support levels.
  
• Overhead, a major downtrend resistance line connecting the highs (₹1,960.35) to the swing X (₹1,851.20) remains the decisive breakout level.
  
• A clear stop-loss line sits near ₹1,520.40, aligned with the 100% extension of Wave A inside Y. A break below this level invalidates the bullish case.
  

Volume Perspective
Recent selling has come with a volume spike, often seen during exhausation selling phases. If volume eases on follow-up candles while price holds above the support zone, it strengthens the case for a reversal.

Outlook
If price can sustain above the ₹1,553–₹1,556 support cluster and eventually break the trendline resistance, it may confirm the end of the corrective phase and open the door for a new impulsive sequence higher. Failure to hold the stop-loss zone, however, would negate this view and suggest further downside.

Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.

17 nov

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