NCLINDIA- Case Study of Classic Patterns

Case Study of Patterns in NSE:NCLINDIA 183

### 1. Ascending Channel Pattern (May 2009 - Nov 2010):

- Time Frame: 1.5 years
- Pattern Characteristics:
- Upward Sloping Channel
- Range of 20 points
- Breakdown:
- Breakdown Level: 78
- Price Decline: 50% or 37 points
- Strong Volume and Price Strength during Breakdown

Explanation: The Ascending Channel during this period indicated a sustained bullish trend. However, the breakdown at the 78 level marked a significant shift, accompanied by robust volume and price strength, leading to a substantial 50% decline.

### 2. Curve Pattern (Aug 2014 - Jan 2017):

- Time Frame: 2.5 years
- Pattern Characteristics:
- Resembles Rectangle Pattern
- Breakout:
- Breakout Level: 56
- Strong Breakout with Volume and Price Spike
- Post-Breakout Movement:
- Reaches 78 Resistance
- Followed by Bearish Candlesticks

Explanation: The Curve Pattern, resembling a rectangle, unfolded over 2.5 years. The breakout at 56 saw a strong surge with significant volume and price spike. However, reaching the 78 resistance led to bearish candlesticks, signaling potential resistance and a shift in momentum.

### 3. Morning Star Pattern:

- Pattern Characteristics:
- Strong Formation at Bottom
- Horizontal Support at 35
- Long Dojis Indicate Indecisiveness
- Strong Volume Strengthens the Pattern
- Post-Pattern Movement:
- Price Moves Upside
- Reaches 78 Resistance

Explanation: The Morning Star pattern, forming at a bottom with a strong horizontal support at 35, suggested a reversal. The presence of long dojis indicated market indecisiveness, but strong volume strengthened the pattern. Subsequently, the price moved upside, reaching the 78 resistance level.

### 4. Rectangle Pattern (2009 - Mid-2023):

- Pattern Characteristics:
- Formation Range: 28 to 92 levels
- Long Formation Period (2009 to Mid-2023)
- Breakout:
- Breakout Level: 56
- Strong Breakout with Volume
- Post-Breakout Movement:
- Breaks 100 Psychological Level in 3 Weeks
- Price Movement: 92 to 188, a 105% Gain

Explanation: The Rectangle Pattern, spanning from 2009 to mid-2023, showcased a range from 28 to 92. The breakout at 56, supported by strong volume, was followed by a rapid ascent, breaking the psychological 100 level in just three weeks and achieving a substantial 105% gain.

### Conclusion:

NLCINDIA's chart patterns offer valuable insights. The recent breakout from the long-term Rectangle Pattern, coupled with strong volume and bullish candlesticks, suggests potential upside. However, comprehensive analysis, including fundamental factors and external market influences, is crucial. Always monitor for signs of reversal or consolidation in the current market context.

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