CYIENT Trade Setup Analysis: Risk-to-Reward and Key ZonesThis analysis outlines a trade setup observed on the chart based on technical price action and supply-demand dynamics. Please note, this is not investment advice but a learning perspective. Below is a detailed breakdown of the idea:
Demand Zone (DZ):
A key demand zone has been identified in the range of 1869.65 - 1879.90, indicating a strong area where buyers stepped in previously, causing a significant price rally. This zone serves as a potential support area, providing a base for further upward movement.
Entry Point:
The suggested entry for this trade is at 1938.00, marked after the price successfully tested the demand zone and showed signs of bullish reversal. This ensures entering the trade as momentum shifts upward, reducing risk.
Stop Loss:
To manage risk, the stop-loss level is set at 1862.30. This level is placed slightly below the demand zone to account for minor price fluctuations while safeguarding capital in case the price breaks below the support zone.
Target Price:
The target for this trade is defined at 2090.00, providing a potential upside of 152 Rs. This level aligns with historical resistance or a logical area where profit-taking might occur.
Risk-to-Reward (RR):
The RR for this trade is calculated at 2.01, making it a favorable setup. This implies that for every unit of risk taken, there is a potential to gain more than 2x in returns.
Technical Signals:
Bullish Engulfing: A strong green candle emerged near the demand zone, signaling renewed buying interest.
Momentum Shift: Indicators suggest increased bullish momentum, aligning with the entry point for this setup.
Trend Continuation: Price action reflects higher highs and higher lows post-reversal, hinting at a potential continuation of the upward trend.
Key Considerations:
Always use proper position sizing to avoid risking more than you can afford to lose.
This analysis is shared purely for educational purposes, and no guarantee of success is implied.
External factors, such as market news or global events, may impact the setup's outcome.
Trade safely and continue learning!
