By Kiran Jani
Understanding the Patterns
- Bullish Continuation Pattern occurs when a stock in an uptrend undergoes a healthy price and time correction before resuming its previous bullish trend. A breakout from this pattern signals a potential continuation of upward momentum.
- Bullish Reversal Pattern: This forms when a stock in a downtrend consolidates at the bottom and then breaks out, signalling a shift from a bearish to a bullish trend.
Both patterns that indicate potential upside opportunities in the telecom sector. Watch these stocks as they navigate key technical levels.
1. Bharti Airtel Limited – Bullish Continuation Pattern
From the beginning of 2024 to the present, Bharti Airtel has delivered an impressive 66% return. After reaching a high of ₹1,179 in October 2024, the stock underwent a correction, touching a low of ₹1,542. It has rebounded from a strong long-term support level at ₹1,540, indicating a potential upside.
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Key technical indicators supporting the Bullish Outlook:
- Ascending Triangle Pattern – The stock has formed an ascending triangle, a classic bullish continuation pattern signalling a potential breakout.
- Volume Surge – Recent price and volume movements suggest increasing investor participation, reinforcing the bullish sentiment.
- RSI in Bullish Zone—The 14-period RSI is trading above 60, indicating strong momentum and potential for further gains.
Source: Investing.com
Outlook – Bharti Airtel
Bharti Airtel’s stock has been in a corrective phase, declining from ₹1,779 to ₹1,511 over the past three months in 2024. However, the price action now reflects a higher-top, higher-bottom pattern, indicating that the stock is in a substantial accumulation zone. Multiple technical chart patterns reinforce the likelihood of an upward move from here, making it a stock to watch in the coming weeks.
2. Indus Towers Limited – Bullish Reversal pattern
Indus Towers had a strong start in 2024, delivering a 72% return before correcting from a high of ₹460 in September 2024. However, its daily chart now signals a potential bullish reversal, supported by key technical indicators:
- Falling Trendline Breakout—The stock has broken out of its short-term falling trendline, signaling a bullish reversal.
- Double Bottom Formation – A breakout from this pattern could confirm renewed upside momentum.
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