SHREEPUSHK - Ready for Breakout

7 нояб.

Here is my observation for this stock

Double Bottom Pattern:
The chart shows a double bottom formation, a bullish reversal pattern indicating a potential end to the downtrend. This pattern often signals a shift in momentum from sellers to buyers.

Minor Resistance and Major Resistance Areas:
The stock broke above a minor resistance level and is now consolidating near the major resistance area. This resistance area is acting as a supply zone where sellers are currently active, but it also indicates strong interest from buyers as the price consolidates here.

Consolidation Near Major Resistance:
The stock is consolidating just below the major resistance, which is often a bullish sign. This consolidation, shown in the highlighted region, indicates that the stock is absorbing selling pressure and gathering momentum for a potential breakout.

Volume Dry-Up During Consolidation:
There is a noticeable drop in volume during the consolidation phase near resistance, a phenomenon known as a "volume dry-up." This suggests that sellers are losing interest or running out of shares to sell, increasing the chance of a breakout when demand picks up.

Rising Moving Averages:
The shorter-term moving averages are rising, indicating positive momentum. The alignment of moving averages supports a continuation of the uptrend, especially if the stock breaks out above the major resistance.

Trade Setup with Key Levels
Breakout Entry: A conservative entry would be above the major resistance area around 270-275 to confirm the breakout.
Targets:
Target 1: 310 – A short-term target after the breakout, based on nearby resistance.
Target 2: 340 – A medium-term target if momentum continues and buyers remain strong.
Target 3: 380 – For a long-term position, depending on how the trend progresses.
Stop-Loss:
Place a stop-loss below the consolidation range or the minor resistance level, around 240, to protect against a false breakout.