Trendline Breakout Setup in Central Depository Services (India) Limited – Early Reversal Signal

Technical Structure (Key Observation) The stock has been in a clear downtrend, respecting a falling trendline. Now price is approaching the trendline resistance (~₹1,450–1,500 zone). Recent bounce from ₹1,120 support shows strong demand absorption. Price Action Insight Formation of higher lows after a prolonged decline suggests accumulation beginning. Sharp bullish candles near resistance indicate aggressive buying interest. However, price is still below the trendline → breakout not confirmed yet. Elliott Wave Perspective The fall looks like a corrective ABC structure. Current move could be the start of a new impulse (Wave 1 / early Wave 3) if breakout sustains. Trigger & Confirmation Breakout Level: ₹1,480–1,520 (trendline zone) Only a weekly close above this zone confirms reversal Target Projection (Post Breakout) Initial Target: ₹1,650–1,700 Extended Target: ₹1,800+ Key Levels Support: ₹1,250–1,300 Major Support: ₹1,120 Invalidation: Back below ₹1,200 = weakness continues Smart Interpretation This is a “prepare, not chase” setup: Not like cup breakout stocks (already running) This is where smart money enters before breakout confirmation Risk is slightly higher, but reward asymmetry is excellent Verdict A high-potential early reversal candidate, provided: Trendline breakout confirms Volume expansion supports move