Gravita India Ltd Forms a triple top pattern Indicating a near-term bearish reversal

A triple top pattern forms when the price creates three consecutive peaks near the same resistance level, signalling weakening buying momentum.

In the chart, Gravita India Ltd has broken below the support neckline. On 24th September, Gravita India Ltd slipped below the Rs 1,540 support neckline. The breakdown, accompanied by sustained selling volumes, confirms strengthening near-term bearish momentum.

In the case of a triple top pattern in Gravita India Ltd, the initial downside targets are generally the closest support levels below the neckline, where traders often consider booking profits or reevaluating their positions.

Gravita India Ltd Chart: Weekly Timeframe

Indicator Confirmation

•  RSI: The weekly RSI indicates bearish momentum, as it fell from 44.96 in the previous trading session to 40.36 on Friday.
•  Price Volume Trend: The Price Volume Indicator confirms the down trend, supported by a sharp increase in selling volume.

Implications

This triple top pattern in Gravita India Ltd indicates a possible near-term downside risk. A clear close below the Rs 1,540 support level, preferably backed by strong selling volumes, would confirm the bearish reversal signal.

About the stock

Gravita Group is a leading global recycling group with operations across multiple recycling verticals. The group is engaged in the recycling and manufacturing of lead, aluminum, copper, rubber, plastics, and lithium. 

Over the past month, Gravita India Ltd. shares have declined 16.84%. The stock, which climbed 5.62% in the last six months, is down 6.13% YoY. For more such technical stock ideas, Click here to view our research page.