UPL : What price action telling us?UPL Ltd –
Analysis:
Wave Structure & Retracement Zone: The price action shows a breakdown of the previous trendline support, followed by a failed Change of Character (ChoCH), indicating potential reversal dynamics. The stock bounced back strongly from the deep retracement zone (127% Fibonacci extension) near 471.55 INR, which also aligns with a key demand zone.
Buying Range: The stock is trading within the highlighted buying range of 550-540 INR, which represents a potential accumulation zone.
Target Zone: The first target zone is marked at 640-657 INR, which aligns with historical resistance levels.
Stop Loss: A strict stop loss is set at 517.80 INR, below the demand zone and deep retracement level, as indicated on the chart.
Trading Plan:
Action: Place buy orders within the 550-540 INR range. Accumulate positions cautiously within this buying zone.
Stop Loss: Place a daily closing-based stop loss at 517.80 INR.
Targets:
First Target: 640 INR.
Final Target: 657 INR.
Reasoning:
The bounce from the deep retracement zone signals strong demand and potential institutional buying.
Failure of the earlier bearish ChoCH suggests that the stock is likely transitioning into an upward trend.
The target range aligns with previous key resistance levels, offering a favorable risk-reward ratio.
