At the Cusp of Long-Term Uptrend !!!!

Schneider Electric : Bullish Patterns Breakout on weekly chart !!!

The stock had witnessed a humongous rally from Aug 2013 - Jun 2015, where price rallied from 55 to 240 levels. Such a tremendous move was seen in less than 3 years which is an exceptional move for the stock price. However, post that stock has remained under the shadow of bears for about 6 years

The stock gave up all its earlier gains and continued to tumble lower for almost more than 6 years. The long ongoing downtrend seems near the end and the bull rally in the stock shall commence going forward. There are multiple triggers on the charts which are signaling a potential turnaround in the stock trend. 

The first chart attached below is the weekly chart of Schneider Electric, which depicts the stock was trading in a downsloping parallel channel for the last 5 years and it is evident that significant peaks and troughs were formed near the upper and lower boundary of the channel pattern. However, this year the stock registered a decisive breakout from the long downsloping channel which is a bullish signal. 

The breakout from prolonging descending channel has accompanied by strong volumes which provides further confirmation and increases the reliability of the breakout. The volumes have increased significantly in the recent upmove, comparing with other instances which suggest participation by Value buyers or Big players at elevated price levels. 

The other attached focuses upon the recent price action. The recent price action indicates the stock is at the Cusp of giving a breakout from the Double Bottom price pattern. The Double Bottom price pattern is a bullish reversal pattern that mostly forms at the bottom of the ongoing trend and signals trend reversal in the price trend.

The neckline of the Double Bottom price pattern is placed around 115 levels. Thus, for the pattern to materialize well, the price needs to surpass and sustain above the neckline with supportive volumes  If it does, the stock price would register a breakout from dual bullish price patterns on the weekly scale. Also, the MACD line is trading at the highest readings which signifies the strength in price and increases the probability that price would successfully register breakout from the said bullish price-pattern.

The stock had earlier faced a strong resistance multiple times near 200 WEMA and recently the price has surpassed and is sustaining above the same which compliments a bullish signal and strength in price. Also, the stock is trading above 20-50-100 WEMAs which indicates a bullish scenario in multiple time frames. 

Thus following the above studies, I believe the stock shall gather further strength once stock surpasses and sustains above 120 levels and post that stock likely to showcase bullish trend and should scale higher towards 145-170 in coming months. While in case of correction, the stock has strong support placed around 105-98 levels. Any close beneath 93 levels, will lead to void the above-mentioned view.

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