Breakout Alert: “Cup & Handle Formation in Action on HEG Ltd 🚀”

Technical Analysis: HEG Ltd has completed a large Cup & Handle pattern on the daily chart with a neckline breakout near ₹580, indicating potential trend reversal confirmation after months of consolidation. The stock witnessed a strong bullish candle with rising volume, validating institutional participation. Elliott Wave Structure: The stock appears to be entering Wave 3 of a new impulsive cycle after completing a corrective phase (Wave 2) between Dec 2024 and Aug 2025 — suggesting momentum strength ahead. MACD Divergence: The indicator shows a bullish crossover above the zero line, confirming a shift in momentum from accumulation to expansion. AVWAP Analysis: The AVWAP from the Dec 2023 high acted as a dynamic resistance multiple times and has now turned into support, reinforcing the bullish structure. Fundamental Snapshot: HEG Ltd, a key player in the graphite electrode segment, maintains a strong balance sheet with healthy ROCE and low leverage. The global recovery in steel and graphite electrode demand adds a fundamental tailwind. Profitability has improved in recent quarters, supported by better capacity utilization and pricing power. Summary: A sustained close above ₹580 could open targets towards ₹650–₹720, with ₹520 acting as strong positional support. Structure: Classic “Cup & Handle” + Volume confirmation + Bullish momentum alignment — a high-probability breakout setup.