Hero MotoCorp: Cup & Handle Breakout Signals Next Leg Up

Date: 9 August, 2025

Buy Zone: ₹4,550 – ₹4,650

Current Price Reference: ~₹4,600

Target: ₹5,650

Pattern: Cup & Handle Breakout

Timeframe: Daily Chart (Breakout) with Weekly Trend Confirmation

Risk Management: Weekly close below ₹4,150 invalidates setup

Technical Structure

Hero MotoCorp has completed a classic Cup & Handle formation on the daily timeframe — one of the most reliable continuation patterns in trend trading.

• The cup formed over multiple months, showing steady accumulation.

• The handle developed as a tight consolidation near resistance — indicating supply absorption by strong hands.

• Price has now broken out above handle resistance, confirming pattern completion.

This breakout signals the beginning of the next impulsive leg higher.

Volume & Delivery Confirmation

What strengthens this setup is delivery quantity expansion:

• On the breakout session, delivery volumes exceeded the average of the last five weeks.

• Rising delivery participation signals institutional accumulation, not short-term speculation.

• This increases the probability of sustained trend continuation.

Target Projection

Cup & Handle projection is derived by adding cup depth to the breakout point.

• Breakout Zone: ~₹4,600

• Cup Depth: ~₹1,050

• Projected Target: ₹5,650

This aligns with higher-timeframe resistance levels.

Trade Plan

Entry: ₹4,550 – ₹4,650

Stop Loss: Weekly close below ₹4,150

Target: ₹5,650

Risk–Reward: Approximately 1:2

Sector Context

The two-wheeler segment continues to show improving demand momentum, especially in rural recovery and festive season cycles. Hero MotoCorp, as the segment leader, is now technically positioned for the next trending leg.

Final View

Hero MotoCorp presents a high-conviction breakout trade:

• Clean Cup & Handle structure

• Strong delivery volume confirmation

• Well-defined risk

• Favorable reward setup

As long as price holds above the breakout zone on weekly closing basis, bullish bias remains intact.

Disclaimer

This analysis is for educational purposes only and not financial advice. Markets involve risk. Always manage position sizing responsibly.

Update: Target Achieved & Profit Booked

Price followed through exactly as anticipated and successfully hit the projected target of ₹5,650.

Returns Calculation

Entry Price Considered: ₹4,600

Exit Price: ₹5,650

Absolute Profit:

₹1,050 per share

Percentage Return:

(1,050 ÷ 4,600) × 100 = 22.8%

Risk–Reward Outcome

Defined Risk: ₹450 per share

Reward Achieved: ₹1,050

Final Risk–Reward: 1 : 2.33

A clean, risk-defined breakout execution.