Positional Trade setupResistance Breakout:
The stock has broken through a strong resistance level twice, as indicated by the horizontal red line and the arrows marked "Breakout."
The recent breakout around the ₹3,500-₹3,600 level seems to be significant, with strong bullish momentum, confirmed by the price closing above this level.
Volume:
The volume spikes during the breakouts suggest that the breakouts are supported by higher trading activity, which often validates the strength of a breakout.
Trend:
The overall trend is bullish, with higher highs and higher lows forming, especially post-June 2024.
The stock may be in an uptrend continuation after successfully retesting previous resistance levels that now act as support.
Positional Trade Ideas:
Bullish Scenario (Long Position):
Entry: If the stock continues to sustain above ₹3,500, a long position can be initiated with a target of ₹4,000-₹4,200 (next potential resistance based on the trend).
Stop Loss: Place a stop loss below ₹3,300 to protect against any false breakout or pullback.
Target: Short-term target ₹4,000-₹4,200 and medium-term target around ₹4,500 based on the previous price action.
Retest Strategy:
If the stock retraces back to ₹3,400-₹3,500 levels (former resistance acting as support), it could be a good re-entry point for a long position.
Stop Loss: Below ₹3,300.
Target: ₹4,000-₹4,200.
Bearish Scenario (Reversal):
If the stock falls back below the ₹3,500 level with high volume, it may indicate a false breakout. A short position can be considered with a stop loss around ₹3,600.
Target: ₹3,200-₹3,100.
Conclusion:
The stock is currently exhibiting bullish signals with strong breakout patterns. A long position above ₹3,500 could offer good returns if it sustains its upward momentum. However, keep an eye on support levels around ₹3,300 to manage risk effectively.
