Cup Pattern Breakout in IT Space

Coforge Limited is showing a strong bullish reversal setup on the daily timeframe. Technical Observations After a sharp correction from higher levels, the stock formed a rounded cup structure. Major resistance around ₹1330–₹1340 acted as a supply zone for multiple weeks. Now price has delivered a strong breakout candle above the neckline with momentum expansion. This indicates potential trend reversal and fresh bullish participation. Structure Analysis The chart suggests: Strong demand emerging from the ₹1050–₹1100 accumulation zone. Higher lows formation during recovery phase. Breakout supported by wide bullish candle body, which usually signals institutional buying strength. Key Levels Breakout Zone: ₹1330–₹1340 Immediate Support: ₹1280 Strong Support: ₹1220–₹1240 Possible Targets Cup pattern measured move indicates: Target 1: ₹1450 Target 2: ₹1550 Extended Swing Target: ₹1650+ Why This Setup Matters Rounded recovery after deep correction Breakout above horizontal resistance Strong momentum candle near neckline IT sector showing selective strength Trading Perspective Aggressive traders may ride momentum above ₹1360. Conservative entry can come on breakout retest near ₹1330 zone. As long as price sustains above breakout level, probability favors continuation toward higher targets. Overall, this appears to be a classic bullish base breakout with potential for a sustained upside swing if broader market sentiment remains supportive.