Positional trade setup for Astral LtdThe chart for Astral Ltd. shows a potential reversal pattern after a prolonged downtrend, where the price has bounced off a key support level near ₹1850-1900. This level acted as strong support, and the stock is showing signs of recovery with recent bullish candles indicating renewed buying interest.
Observations:
Support Zone: The stock has tested and respected a strong support zone near ₹1850, which coincides with a recent bottom formation.
Recovery Signal: A bullish momentum is visible as the stock has crossed back above the ₹2000 level, with a notable upward move.
Positional Trade Setup:
Entry:
Aggressive Entry: Buy at the current levels of ₹2025 since the stock is in an upward trend from the support zone.
Conservative Entry: Wait for a slight pullback towards the ₹1950-2000 range for a better entry after a potential retest of the breakout level.
Target:
First Target (T1): ₹2250-2300, based on previous swing highs and resistance levels.
Second Target (T2): ₹2450-2500, if the stock continues its upward momentum.
Stop Loss:
Place a stop loss just below the recent support at ₹1850, which would invalidate the bullish setup if broken.
Timeframe:
This is a positional trade setup, so it could take a few weeks to a couple of months for the targets to be achieved, depending on market momentum.
Risk Management:
Position Size: Use moderate position sizing considering the stop loss is around ₹170 below the current price, offering a decent risk-to-reward ratio.
Trailing Stop Loss: Once the stock reaches ₹2200, you can move your stop loss to ₹2000 to lock in some gains.
Summary:
Entry: Buy at ₹2025 (current level) or on a pullback to ₹1950-2000.
Stop Loss: ₹1850.
Targets: ₹2250-2300 (T1) and ₹2450-2500 (T2).
This trade setup takes advantage of the bounce from key support, with the potential for a continued upside if the overall market remains bullish.
