NSE:DRREDDY Dr. Reddy’s Laboratories Limited is forming a potential **Cup & Handle Breakout** continuation structure on the daily chart. The stock is recovering strongly from its base lows,…
NSE:DRREDDY Dr. Reddy’s Laboratories Limited is forming a potential **Cup & Handle Breakout** continuation structure on the daily chart. The stock is recovering strongly from its base lows, trading at ₹1,352.00 (+0.52%). As noted in the chart plan: "if comes down to retest, it will make a complete Cup & Handle pattern, & if it Breaks Up then ENTRY.
1814 - 1650 is a Consolidation Zone, if after Consolidation it Breaks Above 1814, we will be Holding the Position." 🔹 PATTERN: CUP & HANDLE BREAKOUT (POTENTIAL) • Pattern Structure: Rounded accumulation cup spanning from the breakdown high down to the major base floor at ₹1,101.00 , developing a handle retest structure. • Cup & Handle Breakout Entry: Major neckline resistance trigger located at ₹1,414.90 . • Retest / Support Zone: Immediate demand shelf spanning ₹1,258.00 – ₹1,295.00 . • Post-Breakout Support / Retest Pivot: Horizontal support level at ₹1,650.30 . • Consolidation Zone: Post-breakout target range between ₹1,650.00 and ₹1,814.20 .
🟢 UPSIDE SCENARIO – BULLISH BREAKOUT & CONSOLIDATION • Primary Breakout Entry (BUY Entry): ₹1,414.90 (Cup & Handle Breakout Entry) • Confirmation Required: Daily candle close above ₹1,414.90 • TARGET 1: ₹1,728.80 (+22.19% move from ₹1,414.90 BUY entry) • Stay Above Consolidation Boundary: ₹1,814.20 (+28.22% move from BUY entry) • SWING TRADE TARGET: ₹2,042.70 (+44.39% move from BUY entry) 🔴 DOWNSIDE SCENARIO – BEARISH FAILURE • Failure Conditions (Chart Rules): # 1 if Price don't take support from Retest zone. # 2 if Price don't Consolidate in the Consolidation Zone.
• Weakening Level: Rejection near ₹1,414.90 followed by a drop below ₹1,295.00 • Important Support Levels: ₹1,300.00 , ₹1,295.00 , ₹1,258.00 (Retest zone), and ₹1,101.00 (Base Low) • Invalidation / Stop Loss (SL): Daily candle close below base low at ₹1,101.00 (-22.19% SL from ₹1,414.90 BUY entry) or tighter stop below retest support at ₹1,258.00 (-11.09% SL). 🔹 MY BREAKOUT & EXIT RULE If price crosses above a key resistance level (such as ₹1,414.90, ₹1,728.80, or ₹1,814.20) and makes a High above that level, but closes below that same level, I consider it a failed breakout/rejection and the BUYER NEEDS TO EXIT THE TRADE.
High above level + Close below level = Failed breakout → EXIT BUY TRADE.
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