Star Health: Trendline Breakout Signals Bullish ReversalStar Health is showing promising signs for long-term holding.
The chart shows a clear downward sloping trendline that has been respected for a considerable period. Recently, the price has broken above this trendline, indicating potential trend reversal from bearish to bullish.
The immediate swing high at ₹675 is a crucial level to watch. This level may act as resistance in the short term.
If the price manages to break above this swing high, it could open the door for a move towards the supply zone. However, if the price faces rejection at this level, a pullback could occur.
The chart suggests a potential scenario where the price could retrace after testing the swing high at ₹675. This retracement could provide a good opportunity for accumulation if the price finds support at lower levels, such as the ₹560-580 zone.
There is a significant increase in volume during the breakout, which adds strength to the bullish case.
Key support levels to watch include the ₹560-580 zone, where the price previously found support after the breakout
There is a marked supply zone between approximately ₹770 and ₹820. where sellers have previously stepped in, leading to price declines. If the price approaches this zone again, it may face significant resistance.
Consider entering a position if the price holds above ₹675 or on a pullback to the ₹560-580 zone. Accumulating during pullbacks with proper risk management could be a prudent strategy.
Be cautious of potential reversals or rejections at the ₹675 swing high or within the supply zone.
This is not a Buy Recommendation, just an idea.
Please give a boost and comment if you like my analysis and feel free to share with others.
Disclaimer: I am not a Sebi Registered Analyst, and the views expressed are of my own and for educational purpose only, Make sure you consult your financial advisor before investing, as I wont be Responsible for any losses incurred.
