We identified a cup and handle pattern in Jyothy Labs daily price chart which is a sign of bullish breakout. See for yourself how we analysed the stock.

The following report was published pre market open on 5th July 2021 to our daily equity report subscribers:

               Jyothy Labs Daily chart as of 2nd July 2021:                                Jyothy Labs 60 mins chart as of 2nd July 2021:

Anticipated analysis:

Jyothy Labs has been intact in medium term uptrend since April 2020. Stock looks to have completed consolidation and has resumed the up move. On weekly charts it has given close above upper Bollinger bands which suggest fresh up move from hereon can continue. In the previous session it closed with a gain of 5.49%.

On the daily chart, it has formed ‘Cup and Handle’ pattern where the cup is in the shape of a "u" and the handle has a slight downward drift. Such pattern formation after the sustained downward trend are of more importance than here. Nevertheless, we can see it here as a one of the accumulation pattern. Prices have closed 164 above which confirms breakout. The 9 EMA has crossed the 18 EMA which is a bullish crossover which indicate that the short-term bias has turned positive.

On the hourly chart, post the breakout near 160 levels prices have rose quickly towards 170 levels. During such sharp trend it is better to wait for some consolidation and hence any dips can provide buying opportunity. One should look for entry in this stock near 164-163 levels. On downside zone of 161-160 is crucial support levels.

In short, trend for this stock is positive. Use dips towards 164-163 as buying opportunity for a move towards 175-176 levels as long as 160 holds on the downside.

             Jyothy Labs Daily chart as of 5th July 2021:                                         Jyothy Labs 60 mins chart as of 5th July 2021: