🔻 Short Trade Setup – Varun Beverages Ltd. (VBL)
CMP: ₹469.55
RSI: 32.02 (Near oversold but with bearish momentum)
🧾 Technical Overview:
Pattern: Rounding Top Formation
Signal: Neckline breached, confirming pattern breakdown
Implication: Signals intensified weakness, increased probability of price decline
📉 Trade Details:
Entry (Short): ₹465
Stop Loss: ₹499 (Above recent resistance & invalidation of breakdown)
Target 1: ₹385
⚠️ Risk-Reward Ratio: Approx. 1:2.3 — favorable for short setup.
Key Notes:
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CMP: ₹469.55
RSI: 32.02 (Near oversold but with bearish momentum)
🧾 Technical Overview:
Pattern: Rounding Top Formation
Signal: Neckline breached, confirming pattern breakdown
Implication: Signals intensified weakness, increased probability of price decline
📉 Trade Details:
Entry (Short): ₹465
Stop Loss: ₹499 (Above recent resistance & invalidation of breakdown)
Target 1: ₹385
⚠️ Risk-Reward Ratio: Approx. 1:2.3 — favorable for short setup.
Key Notes:
- RSI at 32 indicates strong bearish momentum; nearing oversold but not yet exhausted.
- Volume confirmation during neckline breach would strengthen the bearish case.
- Position sizing and strict stop-loss adherence is crucial, as any reversal above ₹499 would negate the pattern.
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Trade closed: stop reached
VBL after breaking the eckline of a rounding top formation, triggering a bearish setup has seen a lowes of 446 levels. However, the stock found strong support around the ₹446 level and displayed a revival renewed buying interest.
The move back above the breakdown point invalidates the earlier bearish setup, effectively negating the rounding top structure. This price action reflects a shift in sentiment and regaining of upward momentum.
Given the strength of the reversal and previous projections, the short-term outlook is now positive, with potential upside towards ₹567. A sustained move above this level may open the path toward ₹610 over the medium to long term.
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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.
Related publications
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.