Sportking India: Cup & Handle Breakout Backed by Strong Fundamentals

$SPORTKING Technical Structure Analysis The stock formed a large Cup Formation between September 2024 and May 2026. A shallow consolidation near the neckline created a Handle Formation, allowing the stock to build strength before the breakout. Price has now convincingly crossed the major resistance zone near ₹160, confirming the pattern. The breakout is accompanied by strong bullish candles, indicating increasing buying interest. The completion of such a large base often leads to sustained medium-term price expansion. Elliott Wave Perspective The current structure aligns well with a bullish Elliott Wave setup: Wave 1: Initial rally into the 2024 peak. Wave 2: Extended corrective and accumulation phase. Wave 3: Potentially underway following the breakout above the neckline. Wave 3 is typically the strongest and longest wave in an impulsive sequence, which makes this breakout particularly significant. MACD Momentum Analysis Momentum characteristics have improved considerably over the past several months. Key observations: During the final stages of the correction, downside momentum weakened despite price volatility. This suggests a potential bullish MACD divergence, often seen before major trend reversals. The recent breakout confirms that momentum has shifted decisively in favor of buyers.