🛰 Cup Reversal Formation on Data Patterns – Momentum Restart After Long Consolidation!

Technical Analysis: The stock has formed a large Cup pattern on the daily timeframe, indicating a potential trend resumption after a prolonged consolidation phase. Elliott Wave structure suggests completion of a corrective Wave 2 and the beginning of Wave 3, which usually drives strong directional rallies. The AVWAP from March 2024 lows has provided consistent support, confirming strong institutional holding in the ₹2,400–₹2,500 zone. Recent breakout above ₹2,950 with rising volume and bullish MACD crossover confirms renewed momentum and accumulation. Price projection from the cup’s depth points towards an immediate target zone of ₹3,400–₹3,500, a 15–18% potential move from current levels. Fundamental Strength: Data Patterns remains one of India’s leading defense electronics solution providers with strong order visibility and healthy operating margins. The company has maintained ROCE above 25% and steady revenue growth, backed by government’s focus on ‘Make in India – Defense’ initiatives. Low debt, high cash reserves, and improving EBITDA margins make it a fundamentally sound mid-cap for medium-term investors. 📈 View: A technically confirmed breakout backed by strong fundamentals — potential continuation toward ₹3,400+. 🔹 Support Zone: ₹2,650–₹2,700 (AVWAP & cup handle region) 🔹 Invalidation: Close below ₹2,600