Synopsis: Eternal Ltd has formed an ascending triangle on the 4-hour chart, signalling a possible short-term bullish breakout.
An ascending triangle is a bullish continuation pattern marked by higher lows and a flat resistance line. The chart shows a confirmed bullish breakout above horizontal resistance. Supported by volume surge, it indicates rising buying pressure and points to a potential short-term upward move. On Friday, Eternal Ltd sustained levels above Rs 247 and held above the ascending triangle neckline on the 4-hour chart, reinforcing its bullish momentum.
In an ascending triangle, traders typically target the nearest resistance level or project a price move equal to the triangle’s height from the breakout point, using strong volume and momentum to confirm the trade.
Eternal Ltd Chart: 4-hour Timeframe
Indicator Confirmation
- MACD: On the daily time frame, the blue MACD line was above the orange signal line, with the histogram turning green, indicating bullish momentum.
- Moving Averages: On the daily time frame, the 5-day moving average was above the 9-day moving average, further confirming a bullish trend.
Implications
The ascending triangle pattern indicates continued upside potential. Maintaining levels above the Rs 247 support mark, especially with strong trading volumes, would further strengthen the near-term bullish outlook.
Established in 2008, Eternal has evolved from a basic restaurant directory into a massive food-tech network. Today, it connects millions of Indian consumers with local eateries and delivery partners, redefining how people find and enjoy their meals. With 24 million+ customers using the app monthly, 300,000+ restaurants serviced, and 500,000+ delivery partners earning their livelihood through Eternal.
Over the past month, Eternal Ltd has risen 7.49%. Despite this short-term gain, the stock is down 26.4% over the past six months and has delivered an 8.89% increase year over year. For more such technical stock ideas, click here to view our research page.
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