JKH.N RISING WEDGE The stock has been trading within a Rising Wedge pattern since late 2019/early 2020. This pattern is generally considered a bearish reversal pattern, suggesting that a decisive break below the lower trendline could lead to a significant downtrend.
The price has recently been testing the lower trendline of the Rising Wedge. The current weekly candle, as circled, is right at this critical support line, indicating an immediate inflection point. The stock closed the week at LKR 21.1, down 1.40%.
Key Levels and Support
The primary support in the near term is the lower trendline of the wedge.
Breakdown Scenario: A definitive weekly close below the lower trendline would confirm the breakdown of the Rising Wedge pattern. The next significant support would be the horizontal "Key Level" zone around LKR 17.0 - LKR 17.8. A break below this key zone would then target the subsequent long-term "Support" zone around LKR 13.0 - LKR 13.5.
Reversal/Continuation Scenario: If the lower trendline holds, the price could bounce back towards the upper trendline of the wedge, which is currently near the LKR 25.0 - LKR 26.0 area.
Projection
The technical structure strongly suggests a bearish projection given the nature of the Rising Wedge pattern and the price's current position right at the critical support.
The most likely projection is a breakdown below the lower trendline, leading to a move towards the LKR 17.0 - LKR 17.8 Key Level support zone. This breakdown would signal the end of the multi-year bullish consolidation represented by the wedge. Traders should look for confirmation via a decisive close below the trendline on the weekly timeframe. If the price manages to hold this line, the alternative projection would be a rally back toward the wedge's high LKR 25.0s, but the immediate technical bias favors the downside.
