Chartink Insights: CEAT Tyre Share Price Formation and the Cup and Handle Pattern

CEAT Tyre Share Price and the Cup and Handle Pattern.

The market presents numerous trading patterns, including continuation and mean reversal. Continuation involves following or riding the trend, and one such dependable pattern is the cup and handle. Also known as the volatility contraction pattern, it features shallower dips with each successive pullback, indicating absorption of supply. By analyzing the CEAT Tyre share price chartink, one can observe previous uptrends followed by pullbacks that fail to breach previous lows. This suggests a higher probability of the price moving upward. For more detailed insights into the cup and handle pattern, click here.  I also suggest read book ‘TRADE LIKE A STOCK MARKET WIZARD BY MARK MINERVINI’. 

All of its sister stock companies like MRF, Apollo Tyre, Jk Tyre,  Goodyear Tyre, are all in good uptrend, though not exhibiting same pattern. Sales of CEAT Tyre remains solid and gathered pace in last three years, sales growth for last three years is at healthy 20%. However profitability ratio like RoE and RoCE remain at lower level at 6.3% and 9.6 % respectively.

Always prioritize risk management and proper position sizing to ensure you stay on track towards your goals. While analysis is valuable, it’s important to acknowledge that it may not always yield the expected results. Be prepared to adapt if things don’t go as planned, and maintain a resilient mindset throughout your journey.

Disclaimer: – I am not SEBI registered advisor. Please consult a professional advisor before taking any decision. This is not buy/sell recommendation.