Manappuram Finance showing 'Cup and Handle' breakout pattern

The stock of Manappuram Finance Limited has given breakout of 'Cup and Handle' pattern on the daily time frame. This breakout is supported by robust volumes. The Cup and Handle is a bullish continuation pattern indicating a consolidation period and followed by a breakout.

With this pattern breakout, the daily ADX, which shows the strength of trend, turned upside and moved above the -DI.

Currently, the stock is trading above its 20-day EMA (131.20), 50-day EMA (137.10), 100-day EMA (127.30) and 200-day EMA (120.80), which indicates a medium-long term uptrend. The leading indicator 14-period daily RSI is currently quoting at 72.83 and it is in the rising trajectory, which suggest bullish bias. The daily stochastic is also suggesting some bullish momentum as fast stochastic line is trading above its slow stochastic line. Moreover, the other volume based indicators like OBV and Money Flow Index are also very strong.

In the near-term, the zone of Rs. 143-Rs.139 is likely to act as a major support as short-term moving averages, i.e. 8-day EMA and 13-day EMA are placed in that region. While on the upside, beyond Friday's high of Rs. 155.10 level, the stock is likely to continue its northward journey.