ELGI Equipments (Weekly Chart) – Technical Analysis

1. Pattern Identification The stock has formed a large Cup & Handle pattern on the weekly timeframe. The cup extends from the 2024 highs around ₹610–620, followed by a prolonged correction and rounded recovery. The recent consolidation between ₹480–580 served as the handle. This week the stock has delivered a clean breakout above the neckline at ₹607. This is a high-quality multi-month base breakout after almost 18 months of consolidation. 2. Breakout Zone Major Resistance / Neckline: ₹600–610 Key observations: Weekly close above ₹620. Strong bullish candle with price expansion. Breakout above a resistance that repeatedly rejected price since mid-2024. The breakout appears decisive rather than marginal. 5. Entry / Retest Zones Aggressive Entry ₹610–630 While price sustains above breakout level. Conservative Entry Wait for retest of: ₹600–610 neckline ₹580–600 support band A successful retest would provide a lower-risk setup. 6. Invalidation Levels Short-Term Weekly close below ₹580 weakens momentum. Medium-Term Weekly close below ₹540 damages the cup-and-handle structure. Major Invalidation Breakdown below ₹420 would invalidate the entire pattern.