Positional Trade Setup for TBZ:
The chart displays a clear basing pattern, resembling a "Cup" formation that has developed over a decade. This pattern typically signifies accumulation and a potential long-term breakout.
The stock has recently broken out of a 10-year resistance level around the 220-225 INR mark, confirming a strong bullish sentiment.
Volume Confirmation:
There is a notable volume buildup as the stock approached and broke above the resistance level, indicating strong buying interest and conviction behind the breakout.
Entry Point:
A good entry point would be on a retest of the breakout level, around 220-225 INR, or a confirmation of continuation above the current price level (237.91 INR).
It's ideal to wait for a slight pullback or consolidation near the breakout zone to reduce risk.
Stop Loss:
A suitable stop loss would be below the breakout level, around 200 INR, ensuring that the stop is placed below the basing pattern and the recent breakout level. This provides a buffer against potential false breakouts.
Target:
The first target could be set at around 300 INR, which is a round number and psychological level, followed by a longer-term target around 350-375 INR, based on the measured move from the cup pattern depth.
Risk-Reward:
Ensure a favorable risk-reward ratio of at least 1:2 or higher. With the entry near 225 INR and a stop loss at 200 INR, a target around 300 INR gives a risk-reward ratio of 1:3, which is attractive for positional trading.
Additional Considerations:
Monitor the volume on pullbacks to ensure they are on declining volume, indicating that the pullback is a buying opportunity rather than a trend reversal.
Keep an eye on broader market conditions as they could impact the stock’s performance.
Summary: TBZ has broken out of a significant multi-year resistance level with strong volume support, indicating a bullish setup. Entering on pullbacks with a well-defined stop loss and target can provide a strong positional trade opportunity.
The stock has recently broken out of a 10-year resistance level around the 220-225 INR mark, confirming a strong bullish sentiment.
Volume Confirmation:
There is a notable volume buildup as the stock approached and broke above the resistance level, indicating strong buying interest and conviction behind the breakout.
Entry Point:
A good entry point would be on a retest of the breakout level, around 220-225 INR, or a confirmation of continuation above the current price level (237.91 INR).
It's ideal to wait for a slight pullback or consolidation near the breakout zone to reduce risk.
Stop Loss:
A suitable stop loss would be below the breakout level, around 200 INR, ensuring that the stop is placed below the basing pattern and the recent breakout level. This provides a buffer against potential false breakouts.
Target:
The first target could be set at around 300 INR, which is a round number and psychological level, followed by a longer-term target around 350-375 INR, based on the measured move from the cup pattern depth.
Risk-Reward:
Ensure a favorable risk-reward ratio of at least 1:2 or higher. With the entry near 225 INR and a stop loss at 200 INR, a target around 300 INR gives a risk-reward ratio of 1:3, which is attractive for positional trading.
Additional Considerations:
Monitor the volume on pullbacks to ensure they are on declining volume, indicating that the pullback is a buying opportunity rather than a trend reversal.
Keep an eye on broader market conditions as they could impact the stock’s performance.
Summary: TBZ has broken out of a significant multi-year resistance level with strong volume support, indicating a bullish setup. Entering on pullbacks with a well-defined stop loss and target can provide a strong positional trade opportunity.
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.