Magellanic Cloud Ltd – 4H Chart Analysis📊 Summary:
A cup and handle pattern appears to have broken out but is now retesting the breakout zone. Price is hovering around support at ₹74–75, but weakness is creeping in, with RSI below 41 and declining momentum.
🔍 Technical Insights:
Pattern: Classic Cup & Handle breakout, but failed to sustain.
Trendline Breakdown: The upward sloping trendline has been breached, signaling possible short-term weakness.
Key Support: ₹74–75 zone (previous breakout resistance).
Resistance Zone: ₹84.50 (recent swing high).
Volume: Declining – indicates lack of buying conviction.
RSI: 40.81 (Bearish momentum), below its moving average (50.41).
✅ Suggestions:
⚠️ For Existing Positions:
Tighten stoploss to below ₹74 (next major support).
Watch price action near ₹74–75. A decisive close below this could drag price toward ₹68 or lower.
🛒 For New Entry (Long):
Avoid fresh entry now unless it reclaims the trendline and ₹78+ with strong volume.
Consider buying only on:
RSI recovery above 50
Price reclaiming ₹78 with bullish candle
🧯 If Support Breaks:
Watch next support at ₹68 and ₹63.
Avoid averaging down blindly unless volume confirms reversal.
📌 Conclusion:
Magellanic Cloud showed promise with a bullish setup, but trendline break and weak RSI point to possible correction or consolidation ahead. Only strength above ₹78 can revalidate the bullish case.
