Observations:
Cup and Handle Formation: A bullish continuation pattern, suggesting that the price may break out upward after the handle formation completes.
Breakout Level: The resistance around the ₹364-366 zone, marked by the top of the "cup."
Strong Volume: There seems to be a spike in buying volume near the breakout, which is a positive signal for the trade.
Trade Setup:
Entry:
Buy Power Grid if it sustains above the ₹366 level with good volume confirmation.
Alternatively, enter on a pullback to the ₹360-364 region after the breakout, if the price retests the breakout zone.
Target:
First Target (T1): ₹380-385, based on the height of the cup pattern.
Second Target (T2): ₹400-410, assuming the broader trend remains bullish and market conditions are favorable.
Stop Loss:
Place a stop loss below ₹350, just below the recent low in the handle or a strong support level.
For a more conservative approach, use a stop loss below ₹340.
Timeframe:
This is a positional trade; it may take a few weeks to play out. Keep an eye on the price action and volume for further cues.
Risk Management:
Position Size: Limit the position size to avoid large losses, as the overall market conditions could still influence the trade. Allocate only a portion of the capital.
Trailing Stop Loss: Once the stock reaches the first target, trail your stop loss to protect profits.
In summary, Power Grid is showing a potentially bullish continuation pattern, and a breakout above ₹366 could lead to significant upside, provided the broader market remains supportive.
Cup and Handle Formation: A bullish continuation pattern, suggesting that the price may break out upward after the handle formation completes.
Breakout Level: The resistance around the ₹364-366 zone, marked by the top of the "cup."
Strong Volume: There seems to be a spike in buying volume near the breakout, which is a positive signal for the trade.
Trade Setup:
Entry:
Buy Power Grid if it sustains above the ₹366 level with good volume confirmation.
Alternatively, enter on a pullback to the ₹360-364 region after the breakout, if the price retests the breakout zone.
Target:
First Target (T1): ₹380-385, based on the height of the cup pattern.
Second Target (T2): ₹400-410, assuming the broader trend remains bullish and market conditions are favorable.
Stop Loss:
Place a stop loss below ₹350, just below the recent low in the handle or a strong support level.
For a more conservative approach, use a stop loss below ₹340.
Timeframe:
This is a positional trade; it may take a few weeks to play out. Keep an eye on the price action and volume for further cues.
Risk Management:
Position Size: Limit the position size to avoid large losses, as the overall market conditions could still influence the trade. Allocate only a portion of the capital.
Trailing Stop Loss: Once the stock reaches the first target, trail your stop loss to protect profits.
In summary, Power Grid is showing a potentially bullish continuation pattern, and a breakout above ₹366 could lead to significant upside, provided the broader market remains supportive.
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.