Diamond Pattern forms on price charts that resemble a diamond shape; this pattern is very rare and generally hard to identify and forms at the end of an uptrend or downtrend, therefore, it is a reversal pattern.
A bullish diamond pattern, which is discussed here, forms when a prior downtrend exists and the price oscillates between lower highs and higher lows, which eventually leads to a diamond-shaped pattern. Â
The target for the pattern is calculated by measuring the height of the widest part of the pattern, and when this height is measured and added to the breakout price, the projected upside is pointed out. Stoploss, like most patterns, is placed below the lowest point of the pattern.
The Breakout Level for the bullish diamond pattern is Rs. 118, which is encircled, and the stock is trading close to the breakout level and is currently trading at Rs. 122. The closest resistance zone for the stock is around Rs. 126 to 129 levels, marked in red. And the Nearest support zone for the stock is Rs. 116, marked in green.
About the Company
The Union Bank of India is one of the leading public sector banks of the country. The Government of India holds 74.76 percent in the Bank’s total paid-up capital. The Bank, having its headquarters in Mumbai (India), was registered on November 11, 1919, as a limited company. On 1st April 2020, Andhra Bank and Corporation Bank were amalgamated into the Union Bank of India.Â
Union Bank has a network of 8,600+ domestic branches, 8,900+ ATMs, 73,500+ employees, and 23,000+ Business Correspondents. The Bank has expanded its presence across all States and Union Territories.
Written By Abhishek Das
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