Resistance Breakout:
The stock has broken through a strong resistance level twice, as indicated by the horizontal red line and the arrows marked "Breakout."
The recent breakout around the ₹3,500-₹3,600 level seems to be significant, with strong bullish momentum, confirmed by the price closing above this level.
Volume:
The volume spikes during the breakouts suggest that the breakouts are supported by higher trading activity, which often validates the strength of a breakout.
Trend:
The overall trend is bullish, with higher highs and higher lows forming, especially post-June 2024.
The stock may be in an uptrend continuation after successfully retesting previous resistance levels that now act as support.
Positional Trade Ideas:
Bullish Scenario (Long Position):
Entry: If the stock continues to sustain above ₹3,500, a long position can be initiated with a target of ₹4,000-₹4,200 (next potential resistance based on the trend).
Stop Loss: Place a stop loss below ₹3,300 to protect against any false breakout or pullback.
Target: Short-term target ₹4,000-₹4,200 and medium-term target around ₹4,500 based on the previous price action.
Retest Strategy:
If the stock retraces back to ₹3,400-₹3,500 levels (former resistance acting as support), it could be a good re-entry point for a long position.
Stop Loss: Below ₹3,300.
Target: ₹4,000-₹4,200.
Bearish Scenario (Reversal):
If the stock falls back below the ₹3,500 level with high volume, it may indicate a false breakout. A short position can be considered with a stop loss around ₹3,600.
Target: ₹3,200-₹3,100.
Conclusion:
The stock is currently exhibiting bullish signals with strong breakout patterns. A long position above ₹3,500 could offer good returns if it sustains its upward momentum. However, keep an eye on support levels around ₹3,300 to manage risk effectively.
The stock has broken through a strong resistance level twice, as indicated by the horizontal red line and the arrows marked "Breakout."
The recent breakout around the ₹3,500-₹3,600 level seems to be significant, with strong bullish momentum, confirmed by the price closing above this level.
Volume:
The volume spikes during the breakouts suggest that the breakouts are supported by higher trading activity, which often validates the strength of a breakout.
Trend:
The overall trend is bullish, with higher highs and higher lows forming, especially post-June 2024.
The stock may be in an uptrend continuation after successfully retesting previous resistance levels that now act as support.
Positional Trade Ideas:
Bullish Scenario (Long Position):
Entry: If the stock continues to sustain above ₹3,500, a long position can be initiated with a target of ₹4,000-₹4,200 (next potential resistance based on the trend).
Stop Loss: Place a stop loss below ₹3,300 to protect against any false breakout or pullback.
Target: Short-term target ₹4,000-₹4,200 and medium-term target around ₹4,500 based on the previous price action.
Retest Strategy:
If the stock retraces back to ₹3,400-₹3,500 levels (former resistance acting as support), it could be a good re-entry point for a long position.
Stop Loss: Below ₹3,300.
Target: ₹4,000-₹4,200.
Bearish Scenario (Reversal):
If the stock falls back below the ₹3,500 level with high volume, it may indicate a false breakout. A short position can be considered with a stop loss around ₹3,600.
Target: ₹3,200-₹3,100.
Conclusion:
The stock is currently exhibiting bullish signals with strong breakout patterns. A long position above ₹3,500 could offer good returns if it sustains its upward momentum. However, keep an eye on support levels around ₹3,300 to manage risk effectively.
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.