A rounding shape in an uptrend is always going out to be strong formation as its actually following the prevailing the trend.

Rounding shapes normally occurs before the stock price would like to resemble the new leg of an another rally. So its going to be the confirmation for the new uptrend continuation.

Round shapes may be differ in the formation with each other. Like some have only a round shape like a D  we use in the geometry measurements. Here in TATA COFFEE it has shown a good base while moving on the upside.

And the formation also visible on the daily , weekly and monthly charts as well which too provides the strongest conformity about the price action.

Indicator study like MACD, RSI , and other momentum indicators also showing good signs of  continuation of the trend.

Just putting more significant ,  volumes also confirms the same as the price spurts taking place at the same time volumes also rising in the same trend.

Here is the snap shot:


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