VEDL: ATH Breakout with Potential for Multi-Level Profit Taking

9 июн.

Overview:

VEDL is currently trading around its all-time high (ATH) and presents an opportunity for a long trade with a promising risk-reward profile. The strategy involves entering a position at 4% above the ATH and employing a dynamic stop-loss approach to manage risk and maximize potential gains.

Entry: Enter a long position at VEDL's ATH price + 4% (ATH + 4%)

Initial Stop-Loss: Set an initial stop-loss at 20% below the entry price

Position Sizing: Limit the trade size to ensure that no more than 5% of your capital is at risk. In case the stop-loss is triggered, the maximum capital loss will be limited to 1%

Trade Rationale: VEDL is a metal stock, and the metal sector is currently exhibiting strong momentum.

Targets: First Target: 763.70 (Fibonacci 1.618 level)

Upon reaching the first target, exit 1/3 of the position and adjust the stop-loss for the remaining 2/3 of the position to breakeven.

Second Target: 929.80 (Fibonacci 2 level)

Upon reaching the second target, exit another 1/3 of the position.
Once the second target is hit, move the stop-loss for the remaining 1/3 of the position to the first target level (763.70).

Third Target: 1364.60 (Fibonacci 3 level)

Upon reaching the third target, exit the entire remaining position.
Risk Management:

The initial stop-loss of 20% below the entry price helps to limit potential losses in case the trade moves against you.

The dynamic stop-loss adjustment after reaching the first target further protects capital and locks in profits.

The position sizing ensures that you are not risking more than you can afford to lose.

Disclaimer:

This trading strategy is for informational purposes only and should not be construed as financial advice. Please conduct your own research and due diligence before making any trading decisions.

Additional Notes:

Consider using technical indicators and chart patterns to refine your entry and exit points.
Monitor market conditions and adjust your strategy accordingly.
Practice risk management techniques to protect your capital.

Please let me know if you have any other questions.

Disclaimer: I Lalit Panchal not a SEBI Registered analyst. The chats and/or stocks and/or research reports and/or market analysis etc are made only for study purpose, and may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and only after consulting such independent advisors as may be necessary.