Technical Analysis: Metal Stock Turns Weak After Forming a Triple Top Pattern

The stock after experiencing an uptrend in recent trading sessions, has formed a triple top pattern in the 3-hour time frame, signalling a potential bearish reversal. The triple top is a well-known bearish reversal pattern marked by three peaks forming near the same price level, with moderate pullbacks in between. It indicates weakening buying momentum and signals a potential shift from an uptrend to a downtrend once the price breaks below the support level, known as the neckline.

On Friday, MMTC share price broke below the Rs 65.6 support neckline after forming a Triple top pattern. This breakdown, accompanied by continuous selling, confirms near-term bearish momentum.

The downside target is generally derived by measuring the distance between the peak and the neckline and projecting it downward from the breakdown point. As prices near this target, traders typically consider booking profits or re-evaluating their positions.

Indicator Confirmation

• RSI: The daily RSI shows bearish momentum, as it dropped from ~58 in the last trading session to 50.67 on Friday, confirming the continuation of the downtrend.
• MACD: The orange signal line crossed above the Blue MACD line, with the histogram turning red, indicating bearish momentum.
• Moving Averages: On the 3-hour time frame, the 5-day moving average has crossed below the 9-day moving average, further confirming a bearish trend.
• Price Volume Trend: The Price Volume Indicator remains flat, indicating a lack of buying volume and limited participation from buyers.

Implications

This bearish triple-top breakdown suggests the potential for further downside momentum. A decisive close below the neckline support, ideally supported by higher volumes, is needed to confirm the move and minimise the risk of a false breakdown. On the upside, resistance is likely around Rs 66, while sustained trading below the breakdown zone would signal continued bearish pressure.

About the stock

MMTC Limited is a Government of India public sector undertaking, incorporated on September 26, 1963, to promote and facilitate India’s foreign trade, particularly through the export and import of essential minerals and metals. Operating under the administrative control of the Ministry of Commerce and Industry, the Government of India held an 89.93% stake in the company as of March 31, 2025. MMTC has a diversified business presence across six key divisions: minerals, metals, precious metals, agro products, fertilisers, and chemicals, as well as coal and hydrocarbons.

Over the past month, MMTC Ltd generated a return of 17.20%. However, the stock declined by 9.01% over the last six months and delivered a negative return of 15.53% over the past year. For more such technical stock ideas, Click here to view our research page.

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