Positional trade setup for CescObservations:
Resistance Breakout: CESC has broken above the horizontal resistance zone around ₹200-206, which it tested multiple times in the past. This breakout indicates bullish momentum.
Strong Volume: The price increase is accompanied by strong buying pressure, suggesting that the breakout may be sustained.
Trade Setup:
Entry:
Aggressive Entry: Buy around the current price of ₹206-208, as the stock has already broken the resistance.
Conservative Entry: Wait for a pullback to the ₹200-205 range, where the stock might retest the breakout zone before resuming its upward move.
Target:
First Target (T1): ₹225-230, based on the previous swing highs and projected move after the breakout.
Second Target (T2): ₹250-260, if the momentum continues and the broader market remains supportive.
Stop Loss:
Place a stop loss at ₹185, below the previous consolidation zone, to avoid being caught in a false breakout.
For a more conservative approach, you can place the stop loss slightly below ₹190, just below a recent low point.
Timeframe:
This is a positional trade, so it could take several weeks to months for the targets to be achieved, depending on the market conditions.
Risk Management:
Position Size: Keep the position size moderate to account for volatility. Use proper risk management, limiting losses if the breakout fails.
Trailing Stop Loss: Once the stock reaches ₹220, consider moving your stop loss to ₹200-205 to lock in some gains. Similarly, if the stock reaches ₹230, move the stop to ₹210.
Summary:
Entry: Buy around ₹206-208 (aggressive) or wait for a pullback to ₹200-205 (conservative).
Stop Loss: ₹185 (aggressive) or ₹190 (conservative).
Targets: ₹225-230 (T1) and ₹250-260 (T2).
This trade idea capitalizes on the breakout above a major resistance level, indicating further upside potential if the trend holds.
