Bullishness ahead? - Financial Market analysis for the week ended April 11, 2025

The markets have been through a rough phase weathering a slew of flip flops on reciprocal tariffs ever since they were announced on Apr 2. So is there a silver lining? It seems so.

Look at the DJIA 2H chart below. It has formed a double bottom during 3 days - Monday April 7 first bottom, Tuesday second bottom and Wednesday the actual breakout, a bullish event. The subsequent price action on Thursday and Friday has been forming what appears to be a cup and handle pattern, yet to break out. The coming week will tell whether the pattern fails or there is a breakout, the probability of the latter being higher.

 2H chart of DJIA illustrating a Double Bottom breakout and a Cup & Handle pattern in the making

In a similar vein, the Indian market also seems to have found its feet, even if temporarily, post the recent carnage. Look at the 2H charts of Nifty and Banknifty below. Both have given breakouts from a big 1-2-3 pattern on their respective charts over the past week. These breakouts have the technical firepower to test their recent highs (Nifty @ 23800 and Banknifty @ 52000). Whether it actually happens or fails, only time can tell.

 2H chart of Nifty illustrating a 1-2-3 pattern breakout last Friday

 2H chart of Banknifty illustrating a 1-2-3 pattern breakout last Friday

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