Overview: Aarti Industries is currently in a critical zone, showing signs of a potential bearish reversal after forming a “Double Top” pattern near ₹765. The stock is trading at ₹573.80 and is approaching the 61.8% Fibonacci retracement level of ₹568, a key level for traders to watch.
Key Technical Indicators:
The stock has completed a classic Double Top formation at ₹765, a bearish reversal signal. This pattern needs confirmation, which can occur if the price breaks below ₹568, targeting ₹509.55 as the next support.
Fibonacci Retracement:
The stock has already tested the 50% retracement level at ₹605.70, failing to hold. The 61.8% retracement at ₹568 is acting as crucial support. If this level is breached, we could see a deeper correction.
A notable increase in selling volume suggests strong bearish sentiment. Watch for continued high volume to confirm a potential breakdown.
Potential Scenarios:
Bullish: If the stock consolidates and rebounds from ₹568, we could see a retest of the ₹605-₹643 zone, giving a bullish opportunity.
Bearish: A break below ₹568 could trigger a sharp decline, with the next target at ₹509.55, aligning with the completion of the Double Top pattern.
Conclusion: Traders should closely monitor the ₹568 support zone. A decisive move in either direction will provide a clear trading opportunity. Keep an eye on volume and overall market sentiment for additional confirmation.
Key Technical Indicators:
- Double Top Pattern:
The stock has completed a classic Double Top formation at ₹765, a bearish reversal signal. This pattern needs confirmation, which can occur if the price breaks below ₹568, targeting ₹509.55 as the next support.
Fibonacci Retracement:
The stock has already tested the 50% retracement level at ₹605.70, failing to hold. The 61.8% retracement at ₹568 is acting as crucial support. If this level is breached, we could see a deeper correction.
- Volume Spike:
A notable increase in selling volume suggests strong bearish sentiment. Watch for continued high volume to confirm a potential breakdown.
Potential Scenarios:
Bullish: If the stock consolidates and rebounds from ₹568, we could see a retest of the ₹605-₹643 zone, giving a bullish opportunity.
Bearish: A break below ₹568 could trigger a sharp decline, with the next target at ₹509.55, aligning with the completion of the Double Top pattern.
Conclusion: Traders should closely monitor the ₹568 support zone. A decisive move in either direction will provide a clear trading opportunity. Keep an eye on volume and overall market sentiment for additional confirmation.
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.