MARA.N Weekly

This chart and analysis are not financial advice. Do your own research before trading or investing.

CSELK: MARA.N0000

Pattern Analysis - Cup and Handle Formation:
The chart displays a well-formed cup and handle pattern with a neckline at 4.70. This bullish pattern often signals a strong move upward after the breakout.
Height of the Cup:
Approximately 3.7 LKR, suggesting a potential upside target near 8.40 (4.70 + 3.7) if the breakout sustains.
Current Position:
The price appears to be testing the neckline after a breakout, a key level to watch for confirmation.

Moving Averages
30 MA (Yellow): The price trades well above the 30-week moving average, indicating strong bullish momentum.
50 MA (Purple): The 50-week moving average also slows upwards, showing long-term support for the trend.

Volume Analysis - Volume Spike:
A clear increase in volume during the right side of the cup, especially near the breakout level, supports the pattern's validity. Declining volume during a potential pullback (if any) would further confirm a bullish breakout.

Support and Resistance Levels
Support:
4.70 (Neckline): This level now acts as immediate support. A retest here would be healthy as long as the price holds.
4.20 – 4.30: Recent price action and Fibonacci retracement levels provide a minor support zone.

Resistance:
Minor resistance is seen near 5.00 – 5.20 from previous highs.
The major target can be around 8.40 based on the cup and handle breakout projection.

Bull Case Scenario:
A sustained breakout above 4.70 with strong volume could trigger a rally towards 5.50–5.80 in the short term and potentially towards the 8.00–8.40 zone based on the pattern target.
Continued support above the 30 MA reinforces bullish sentiment.

Bear Case Scenario:
Failure to hold above 4.70 could lead to a retest of lower support levels at 4.30 or even 3.80.
A break below the 50 MA (~3.80) would invalidate the bullish thesis and signal a possible reversal or deeper correction.