SUN PHARMA – Weekly Chart Analysis

🔵 Trend Structure
• The stock has been in a broad consolidation phase since late 2023.
• Price recently moved up strongly and is now testing a long-term descending trendline.
• This trendline has acted as resistance multiple times, making the current level crucial.
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🔥 Current Price Action (Bullish Attempt)
• Latest weekly candle shows strong buying with a close near the highs.
• Price is attempting a breakout above the descending resistance.
• Follow-through next week is important — a breakout ideally needs:
o Strong closing above the trendline
o No immediate rejection wick
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🧭 Key Levels to Watch
🟢 Resistance Levels
• ₹1,812 – 1,832 → First supply zone
• ₹1,850 – 1,880 → Major resistance; previous swing highs
• ₹1,912 – 1,960 → Strong multi-year resistance zone
A breakout above ₹1,880 could open the path toward ₹1,960.
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🔴 Support Levels
• ₹1,740 – 1,755 → Immediate support (trendline retest zone)
• ₹1,580 – 1,555 → Major support cluster
• If the price falls below ₹1,555, the trend becomes weak on weekly timeframe.
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⚖️ Market Psychology
• Buyers are stepping in aggressively after multi-week accumulation.
• Sellers are defending the trendline, so the next 1–3 candles decide direction.
• A breakout will bring momentum traders & institutions, increasing volatility.
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📈 Possible Scenarios
1️⃣ Bullish Breakout (Most likely if momentum continues)
• Weekly close above ₹1,810
• Retest of trendline → Support holds
• Targets: ₹1,850 → ₹1,880 → ₹1,960
2️⃣ Rejection from Trendline
• Wicks on top or red candle next week
• Price may fall back to ₹1,740 or deeper
• Loss of ₹1,740 increases risk of falling to ₹1,580
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🔍 Pro Trader View
• Trendline breakout is the trigger zone.
• Watch for:
o Volume expansion
o Strong closes above resistance
o No sharp rejections
Price trending above the descending trendline will shift the structure from consolidation to fresh uptrend continuation.
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⚠️ Disclaimer
This analysis is for educational and informational purposes only. It is not investment advice. Trading and investing involve risk. Always consult your financial advisor and do your own research before taking any trading decisions.