Rain Industries - Box Confirmation for Buy
**Rain Industries - Box Confirmation for Buy**
#### **Key Observations**:
1. **Range Breakout Setup**:
- The chart highlights a **box range** between **₹150.69** (support) and **₹220.34** (resistance).
- The recent price movement shows a **strong upward breakout** from the lower box level, currently trading around **₹192.55**.
2. **Box Confirmation**:
- A successful breakout above **₹195–₹200** with sustained volumes would confirm bullish momentum.
- A move towards the upper resistance zone at **₹220.34** appears likely.
3. **Volume Analysis**:
- Monitor for **volume spikes** during the breakout; higher volumes indicate strong buying interest.
4. **Moving Average Support**:
- The price has reclaimed the **50-day moving average** and is now consolidating above it.
- This moving average will act as dynamic support.
5. **Risk-Reward Setup**:
- **Entry**: Buy on confirmation above **₹195–₹200**.
- **Stop-Loss**: Set at **₹175** (below recent support).
- **Targets**:
- **First Target**: ₹220.34 (upper box resistance).
- **Second Target**: ₹240–₹250 (if momentum continues post breakout).
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### **Trade Strategy**:
- **Entry Zone**: ₹195–₹200 (upon box breakout confirmation).
- **Stop-Loss**: ₹175.
- **Target**: ₹220.34 (initial), with extended targets up to ₹240–₹250.
### **Conclusion**:
Rain Industries is exhibiting a bullish range breakout setup. A confirmation above ₹200 with strong volumes can trigger a rally towards the upper resistance zone at ₹220. Traders can consider buying with strict risk management.
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#### **Key Observations**:
1. **Range Breakout Setup**:
- The chart highlights a **box range** between **₹150.69** (support) and **₹220.34** (resistance).
- The recent price movement shows a **strong upward breakout** from the lower box level, currently trading around **₹192.55**.
2. **Box Confirmation**:
- A successful breakout above **₹195–₹200** with sustained volumes would confirm bullish momentum.
- A move towards the upper resistance zone at **₹220.34** appears likely.
3. **Volume Analysis**:
- Monitor for **volume spikes** during the breakout; higher volumes indicate strong buying interest.
4. **Moving Average Support**:
- The price has reclaimed the **50-day moving average** and is now consolidating above it.
- This moving average will act as dynamic support.
5. **Risk-Reward Setup**:
- **Entry**: Buy on confirmation above **₹195–₹200**.
- **Stop-Loss**: Set at **₹175** (below recent support).
- **Targets**:
- **First Target**: ₹220.34 (upper box resistance).
- **Second Target**: ₹240–₹250 (if momentum continues post breakout).
---
### **Trade Strategy**:
- **Entry Zone**: ₹195–₹200 (upon box breakout confirmation).
- **Stop-Loss**: ₹175.
- **Target**: ₹220.34 (initial), with extended targets up to ₹240–₹250.
### **Conclusion**:
Rain Industries is exhibiting a bullish range breakout setup. A confirmation above ₹200 with strong volumes can trigger a rally towards the upper resistance zone at ₹220. Traders can consider buying with strict risk management.
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