INDIGOPNTS

consolidation Phase, Breakout May Set the Next Trend

The daily chart of Indigo Paints is clearly showing a well-defined sideways consolidation phase, with the stock trading within a narrow range of ₹1190 to ₹1215. This range-bound movement has been persistent since 9th July 2025, and within this period, the stock has formed around five Doji candlesticks, each marked by small bodies and long wicks. Such formations generally reflect indecision among market participants and often signal the possibility of a breakout in either direction. Interestingly, despite this price stagnation, the Relative Strength Index (RSI) has remained elevated. Currently at 71, the RSI has been above the overbought threshold of 70 since 2nd July 2025, indicating that underlying buying pressure remains strong, even though the price is consolidating. This divergence between strong RSI and sideways price action could be hinting at an upcoming volatile move. For now, the stock remains in a neutral zone, and traders should wait for a decisive breakout from the established range. A close above ₹1215 would indicate bullish strength and could open the path for a fresh upward move. Conversely, a close below ₹1190 would break the support level and potentially trigger a short-term downtrend. Until then, it is advisable to remain patient, as the ongoing consolidation with high RSI suggests that the breakout, when it occurs, could be sharp and directional.