Coromandel International Ltd. (ticker: COROMANDEL) ForecastThe provided chart is a 4-hour candlestick chart for Coromandel International Ltd. (ticker: COROMANDEL) on the National Stock Exchange (NSE). Here’s a detailed analysis and summary of the chart:
Timeframe and Data:
- Timeframe: 4-hour
- Data Range: From early January 2024 to late May 2024
Price Analysis:
- Current Price: ₹1,246.25
- Price Movement: The stock has shown a mix of uptrend and consolidation phases within the given period.
Technical Patterns and Indicators:
- Double Top Formation:
- The chart shows a clear double top pattern, indicating a potential bearish reversal. The double top is formed around the ₹1,280.00 level.
- The two peaks marked by red arrows show the double top pattern within the resistance zone.
- Support and Resistance Zones:
- Resistance Zone: The area between ₹1,250.00 and ₹1,280.00 is highlighted as a resistance zone, where the price has faced selling pressure.
- Support Zone: A significant support zone is marked around ₹1,120.00 to ₹1,040.00, which acted as a strong support level earlier in the year.
- Trendlines:
- An upward-sloping trendline can be seen connecting the higher lows from mid-March to May 2024.
- Another trendline connecting the higher highs forms a rising wedge pattern, indicating a potential bearish breakout.
- Sell Trigger and Target:
- A sell trigger is indicated at the break below the minor support level around ₹1,230.00.
- Target Price: The sell target (TP) is marked at ₹1,180.00, suggesting a bearish move towards this level after breaking the support.
Key Levels:
- Resistance Levels:
- Immediate resistance at the double top region around ₹1,280.00.
- Another resistance level within the resistance zone at ₹1,250.00.
- Support Levels:
- Immediate support at around ₹1,230.00, where a minor consolidation can be seen.
- Further support at the major support zone around ₹1,120.00 to ₹1,040.00.
Trade Setup:
- Bearish Scenario: The double top formation suggests a potential bearish scenario. If the price breaks below the minor support level of ₹1,230.00 and the trendline support, a move towards the sell target at ₹1,180.00 is likely.
- Bullish Scenario: For a bullish outlook, the price needs to break and sustain above the resistance zone at ₹1,280.00. This could invalidate the double top pattern and suggest further upside potential.
Conclusion:
The chart for Coromandel International Ltd. indicates a potential bearish scenario with the formation of a double top pattern around ₹1,280.00 and a rising wedge. A break below the immediate support level of ₹1,230.00 could trigger a move towards the sell target at ₹1,180.00. Traders should look for confirmed breakouts from key levels to make informed trading decisions. The resistance zone around ₹1,250.00 to ₹1,280.00 and the support levels at ₹1,230.00 and ₹1,120.00 to ₹1,040.00 are crucial levels to watch.
