Markets rarely announce a trend change with a trumpet. More often, they whisper through price action – a breakout, a pullback, a test of an old level (breakout level) and then a renewed attempt to move higher.
That is precisely the story emerging on the weekly charts of Bharti Airtel and Vodafone Idea. The two telecom stocks are at very different stages of their long-term price structures, but the technical message has an interesting common thread – breakout zones are being tested, support is holding, and momentum is attempting to turn upward.
The first chapter belongs to Bharti Airtel.
Bharti Airtel: When Old Resistance Turns Into New Support
Bharti Airtel ‘s weekly chart presents a classic example of the breakout-retest principle.
The stock had earlier faced resistance around the Rs.1,779 zone. Once price eventually crossed this important horizontal barrier, the character of the level changed. What was once a ceiling behaved like a potential floor.
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The subsequent price action is where the chart becomes interesting.
Rather than continuing vertically higher, the stock returned towards the breakout area and spent several weeks consolidating around it. This is not necessarily a sign of weakness. In technical analysis, such behaviour can be interpreted as a market testing whether the newly conquered level can withstand selling pressure.
The answer, so far, appears constructive.
The Confluence Factor: 100-WEMA Meets Horizontal Base
The retest zone has coincided with the rising 100-week Exponential Moving Average (100-WEMA), creating a confluence of technical support.
Two independent tools – a horizontal price structure and a long-term moving average – are therefore pointing towards broadly the same area.
That matters.
A single support level can fail. A confluence zone often provides a more meaningful technical battleground.
The chart also shows another piece of the puzzle: weekly RSI has moved back above the 50 mark.
For trend-following analysis, 50 on RSI is less about identifying an overbought or oversold condition and more about understanding momentum’s side of the market. When RSI sustains above 50, bullish momentum regains control. The recent turn higher from the lower region suggests that momentum is no longer behaving as it did during the earlier corrective phase.
The next chapter will be written by price. A sustained hold above this zone offers a probable opportunity and strengthen the continuation argument, while a decisive failure of the Rs.1,700 support zone would challenge it.
Vodafone Idea: Testing the ₹13 Support Base
Vodafone Idea offers a different but equally intriguing technical narrative.
The stock first crossed the Rs.13 area, establishing a breakout from a long-standing price structure. But, once again, the real test did not come during the breakout. It came afterwards.
Price subsequently moved back towards the breakout zone, effectively revisiting the level that had previously acted as resistance. The recent candles around this region show the market attempting to absorb supply rather than aggressively breaking down.
And then comes the second signal.
The stock has started turning north from the retest zone, while the weekly RSI is also turning upward from around the bullish 50 region.
This combination deserves attention because momentum and price are beginning to tell the same story.
A breakout without momentum can become a false move. Momentum without a meaningful price structure can lack context. Here, however, the two are beginning to align.
The technical sequence is therefore:
Breakout → Retest → Holding of breakout zone → RSI turns north from 50 → potential continuation.
The important word is potential. Technical analysis does not predict with certainty; it identifies areas where the probability may be shifting and the stock price offers traders and investors a probable opportunity with the next leg of resistance placed at Rs.18-19.
The Playbook: Why the Post-Breakout Retest Matters
There is a broader lesson hidden inside both charts.
Investors often focus on the breakout candle. Experienced chart watchers tend to focus on what happens after the breakout.
The retest tells us whether the market accepts the new price territory.
Bharti Airtel is testing a major breakout zone alongside its 100-WEMA, while Vodafone Idea is attempting to convert its Rs.13 breakout into a sustainable support base. In both cases, weekly RSI is adding a momentum confirmation by holding or turning upward around the 50 threshold.
That creates an interesting technical narrative not because the charts guarantee an upside move, but because price structure, support and momentum are beginning to point in the same direction.
In the weeks ahead, the message is simple: watch the retest zones, watch the 50 level on RSI, and most importantly, watch price.
Because in a market that speaks through charts, the breakout may start the story. The retest decides whether the story continues.
Disclaimer:
Note: The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Brijesh Bhatia is an Independent Research Analyst and is engaged in offering research and recommendation services with SEBI RA Number – INH000022075. He has two decades of experience in India’s financial markets as a trader and technical analyst.
Disclosure: The writer and his dependents do not hold the stocks discussed here.
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