PSNL have just broken out of its 6 months Trend Channel; coinciding with an immediate breakout of its Ascending Triangle chart pattern. The counter have now rallied to a total gain of +20.61% from its chart pattern breakout during the week.
The development of the highlighted patterns were contested on 23rd November 2020 (greyed), with PSNL encountering its largest sell off of the year. The intraday -17.89% session was accompanied with volume exceeding more than 250% above its 50D volume average, which invoked fear among the retail community of this counter.
On the flip side, the close of that bearish market session have PSNL remains supported at its 50DMA level, with insufficient weakness to test the major support at $24.00. The scenario have indefinitely presented a very optimal bullish opportunity with all the weak hands being flushed out, reinforcing the trend channel momentum of PSNL.