India, July 2 -- The Eternal Ltd, following a phase of sideways consolidation in recent sessions, has developed a rectangular channel pattern. From the above chart, the stock has clearly broken above the key resistance level near Rs 265.

On Wednesday, the stock reached a higher high and broke above the key resistance level of Rs 265 and ended the session at Rs 280 in 4-hour chart time frame The move was backed by a sharp rise in volumes, signalling the emergence of near-term bullish momentum.

For a rectangular channel, the price target is estimated by adding the height of the prior range to the breakout level or by identifying the next resistance zones. Traders use this projection to set profit targets and often book partial or full gai...