The chart for Astral Ltd. shows a potential reversal pattern after a prolonged downtrend, where the price has bounced off a key support level near ₹1850-1900. This level acted as strong support, and the stock is showing signs of recovery with recent bullish candles indicating renewed buying interest.
Observations:
Support Zone: The stock has tested and respected a strong support zone near ₹1850, which coincides with a recent bottom formation.
Recovery Signal: A bullish momentum is visible as the stock has crossed back above the ₹2000 level, with a notable upward move.
Positional Trade Setup:
Entry:
Aggressive Entry: Buy at the current levels of ₹2025 since the stock is in an upward trend from the support zone.
Conservative Entry: Wait for a slight pullback towards the ₹1950-2000 range for a better entry after a potential retest of the breakout level.
Target:
First Target (T1): ₹2250-2300, based on previous swing highs and resistance levels.
Second Target (T2): ₹2450-2500, if the stock continues its upward momentum.
Stop Loss:
Place a stop loss just below the recent support at ₹1850, which would invalidate the bullish setup if broken.
Timeframe:
This is a positional trade setup, so it could take a few weeks to a couple of months for the targets to be achieved, depending on market momentum.
Risk Management:
Position Size: Use moderate position sizing considering the stop loss is around ₹170 below the current price, offering a decent risk-to-reward ratio.
Trailing Stop Loss: Once the stock reaches ₹2200, you can move your stop loss to ₹2000 to lock in some gains.
Summary:
Entry: Buy at ₹2025 (current level) or on a pullback to ₹1950-2000.
Stop Loss: ₹1850.
Targets: ₹2250-2300 (T1) and ₹2450-2500 (T2).
This trade setup takes advantage of the bounce from key support, with the potential for a continued upside if the overall market remains bullish.
Observations:
Support Zone: The stock has tested and respected a strong support zone near ₹1850, which coincides with a recent bottom formation.
Recovery Signal: A bullish momentum is visible as the stock has crossed back above the ₹2000 level, with a notable upward move.
Positional Trade Setup:
Entry:
Aggressive Entry: Buy at the current levels of ₹2025 since the stock is in an upward trend from the support zone.
Conservative Entry: Wait for a slight pullback towards the ₹1950-2000 range for a better entry after a potential retest of the breakout level.
Target:
First Target (T1): ₹2250-2300, based on previous swing highs and resistance levels.
Second Target (T2): ₹2450-2500, if the stock continues its upward momentum.
Stop Loss:
Place a stop loss just below the recent support at ₹1850, which would invalidate the bullish setup if broken.
Timeframe:
This is a positional trade setup, so it could take a few weeks to a couple of months for the targets to be achieved, depending on market momentum.
Risk Management:
Position Size: Use moderate position sizing considering the stop loss is around ₹170 below the current price, offering a decent risk-to-reward ratio.
Trailing Stop Loss: Once the stock reaches ₹2200, you can move your stop loss to ₹2000 to lock in some gains.
Summary:
Entry: Buy at ₹2025 (current level) or on a pullback to ₹1950-2000.
Stop Loss: ₹1850.
Targets: ₹2250-2300 (T1) and ₹2450-2500 (T2).
This trade setup takes advantage of the bounce from key support, with the potential for a continued upside if the overall market remains bullish.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.