Rain Industries: Range Trading Setup with MACD & Bollinger Band
Long Position:
Entry: Current price level (around 163-165)
Target: 175-180 (Upper range of the channel)
Stop-Loss: 155 (Tightened stop-loss, just below recent support)
Pattern Overview:
Horizontal Channel: Rain Industries is trading within a well-defined horizontal channel, with support around 145-150 and resistance around 175-180. The stock has recently bounced from the lower support and is moving toward the upper resistance.
MACD: The MACD line has crossed above the signal line, indicating a bullish momentum shift. This supports the potential move toward the upper range of the channel.
Bollinger Bands: The stock is currently trading near the middle of the Bollinger Bands. The narrowing bands suggest decreasing volatility, but a move toward the upper band (around 175-180) is possible as the stock approaches the upper resistance.
Strategy:
Enter long near the current price level with a target of 175-180, the upper boundary of the channel. Use a stop-loss at 155 to reduce downside risk while still allowing the trade to develop.
Risk/Reward Ratio: ~3:1
Key Levels to Watch:
Support: 155
Resistance: 175-180
MACD Bullish Signal: Watch for continued divergence between the MACD and signal lines for confirmation.
Bollinger Bands: Look for price action near the upper band as a potential exit point.
Disclaimer:
*I am not SEBI registered and this idea could be wrong. I'm here to learn, so please share your thoughts in the comments. Don’t follow this blindly! :) *
Entry: Current price level (around 163-165)
Target: 175-180 (Upper range of the channel)
Stop-Loss: 155 (Tightened stop-loss, just below recent support)
Pattern Overview:
Horizontal Channel: Rain Industries is trading within a well-defined horizontal channel, with support around 145-150 and resistance around 175-180. The stock has recently bounced from the lower support and is moving toward the upper resistance.
MACD: The MACD line has crossed above the signal line, indicating a bullish momentum shift. This supports the potential move toward the upper range of the channel.
Bollinger Bands: The stock is currently trading near the middle of the Bollinger Bands. The narrowing bands suggest decreasing volatility, but a move toward the upper band (around 175-180) is possible as the stock approaches the upper resistance.
Strategy:
Enter long near the current price level with a target of 175-180, the upper boundary of the channel. Use a stop-loss at 155 to reduce downside risk while still allowing the trade to develop.
Risk/Reward Ratio: ~3:1
Key Levels to Watch:
Support: 155
Resistance: 175-180
MACD Bullish Signal: Watch for continued divergence between the MACD and signal lines for confirmation.
Bollinger Bands: Look for price action near the upper band as a potential exit point.
Disclaimer:
*I am not SEBI registered and this idea could be wrong. I'm here to learn, so please share your thoughts in the comments. Don’t follow this blindly! :) *
Disclaimer
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