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| Heidelberg Cement (HEIDELBCEM), May 28, 2013 |
Heidelberg Cement has formed a Cup and Handle chart pattern, indicated as A. We have drawn a Resistance line, indicated as Line - R. We have also drawn a average volume line, indicated as V.
After forming a successful Cup and Handle pattern, usually, price goes to up. The cup has already formed. Now, the handle is forming. Low volume is also giving a support to form a successful Handle. If everything goes fine, then there is a strong chance for uptrend and price may hit the resistance level at 290.
Sometimes handle formation takes long time. Price fall with large volume during handle formation time, it's a broken handle. I have drawn a blue line which is our support line. It will help us to identify the broken handle. Handle is another type of Pullback.
The bottom line is - Volume is the king. Present low volume is positive for handle formation. But large volume will be required when it breaks the top of the cup.
