Observations:
Resistance Breakout: CESC has broken above the horizontal resistance zone around ₹200-206, which it tested multiple times in the past. This breakout indicates bullish momentum.
Strong Volume: The price increase is accompanied by strong buying pressure, suggesting that the breakout may be sustained.
Trade Setup:
Entry:
Aggressive Entry: Buy around the current price of ₹206-208, as the stock has already broken the resistance.
Conservative Entry: Wait for a pullback to the ₹200-205 range, where the stock might retest the breakout zone before resuming its upward move.
Target:
First Target (T1): ₹225-230, based on the previous swing highs and projected move after the breakout.
Second Target (T2): ₹250-260, if the momentum continues and the broader market remains supportive.
Stop Loss:
Place a stop loss at ₹185, below the previous consolidation zone, to avoid being caught in a false breakout.
For a more conservative approach, you can place the stop loss slightly below ₹190, just below a recent low point.
Timeframe:
This is a positional trade, so it could take several weeks to months for the targets to be achieved, depending on the market conditions.
Risk Management:
Position Size: Keep the position size moderate to account for volatility. Use proper risk management, limiting losses if the breakout fails.
Trailing Stop Loss: Once the stock reaches ₹220, consider moving your stop loss to ₹200-205 to lock in some gains. Similarly, if the stock reaches ₹230, move the stop to ₹210.
Summary:
Entry: Buy around ₹206-208 (aggressive) or wait for a pullback to ₹200-205 (conservative).
Stop Loss: ₹185 (aggressive) or ₹190 (conservative).
Targets: ₹225-230 (T1) and ₹250-260 (T2).
This trade idea capitalizes on the breakout above a major resistance level, indicating further upside potential if the trend holds.
Resistance Breakout: CESC has broken above the horizontal resistance zone around ₹200-206, which it tested multiple times in the past. This breakout indicates bullish momentum.
Strong Volume: The price increase is accompanied by strong buying pressure, suggesting that the breakout may be sustained.
Trade Setup:
Entry:
Aggressive Entry: Buy around the current price of ₹206-208, as the stock has already broken the resistance.
Conservative Entry: Wait for a pullback to the ₹200-205 range, where the stock might retest the breakout zone before resuming its upward move.
Target:
First Target (T1): ₹225-230, based on the previous swing highs and projected move after the breakout.
Second Target (T2): ₹250-260, if the momentum continues and the broader market remains supportive.
Stop Loss:
Place a stop loss at ₹185, below the previous consolidation zone, to avoid being caught in a false breakout.
For a more conservative approach, you can place the stop loss slightly below ₹190, just below a recent low point.
Timeframe:
This is a positional trade, so it could take several weeks to months for the targets to be achieved, depending on the market conditions.
Risk Management:
Position Size: Keep the position size moderate to account for volatility. Use proper risk management, limiting losses if the breakout fails.
Trailing Stop Loss: Once the stock reaches ₹220, consider moving your stop loss to ₹200-205 to lock in some gains. Similarly, if the stock reaches ₹230, move the stop to ₹210.
Summary:
Entry: Buy around ₹206-208 (aggressive) or wait for a pullback to ₹200-205 (conservative).
Stop Loss: ₹185 (aggressive) or ₹190 (conservative).
Targets: ₹225-230 (T1) and ₹250-260 (T2).
This trade idea capitalizes on the breakout above a major resistance level, indicating further upside potential if the trend holds.
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.