PIDILITIND: High-Probability Trade Setup1️⃣ Current Market Structure & Fibonacci Setup
The price is currently in a corrective wave, forming a potential ABC pattern from the swing high of ₹3,385.40.
The correction aligns with the crucial 113%-127% retracement zone, a powerful reversal area often referred to as the golden extension zone.
Support Zone: ₹2,945 - ₹2,886 (Demand Zone)
Golden Retracement Zone: ₹2,817 - ₹2,850
Stop Loss: Below ₹2,817 (Day Close Basis)
Target Zone: ₹3,332 - ₹3,364 (Volume Imbalance Zone)
2️⃣ Why is the 113%-127% Retracement Zone Important?
Liquidity Grab: This zone often acts as a "trap" where liquidity is taken before the market reverses.
Reversal Point: It overlaps with demand zones and volume imbalances, making it a high-probability area.
Harmonics: Possible completion of a corrective wave C in this range, signaling a potential trend reversal.
3️⃣ Volume & Break of Structure (BoS)
Volume Imbalance: The price has left a gap at higher levels, which will likely act as a magnet for future bullish moves.
Break of Structure: A breakout above ₹3,075 will confirm bullish continuation toward the ₹3,332-₹3,364 zone.
4️⃣ Trade Plan with Confluences
Entry Zone: ₹2,945 - ₹2,886
Stop Loss: Below ₹2,817 (Day Close Basis)
Target 1: ₹3,162.35 (Immediate Resistance)
Target 2: ₹3,332 - ₹3,364 (Volume Imbalance Zone)
Confluence Factors:
Price nearing a demand zone with FVG overlap.
113%-127% retracement aligns with Fibonacci and market psychology.
Wave C correction appears to be completing.
5️⃣ Risk Management
Always prioritize risk management in your trades.
Position sizing should align with your risk tolerance.
Monitor price action near ₹3,075 for confirmation of bullish strength.
If the price breaks ₹2,817, reassess the setup.
Key Takeaway :
Pidilite Industries offers a great educational case study on using Fibonacci, demand zones, and structural analysis together. The golden retracement zone and volume imbalance make this a high-probability trade idea for both swing and positional traders.
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