PARADEEP - Range Breakout

vor 6 Tagen

PARADEEP - Range Breakout

4-Month Range:
The stock was trading within a clear range for approximately 4 months, between ₹76 (support) and ₹95 (major resistance).
During this period, the price was consolidating, indicating indecision or accumulation by market participants. The price tested both the upper and lower boundaries of the range several times, but never made a decisive breakout until recently.

Minor Resistance:
There was a minor resistance around ₹88, which the price had difficulty breaching during the consolidation phase.
This level also acted as a support level during the later stages of the range-bound movement, holding up the price when tested.

Major Resistance and Breakout:
The stock encountered major resistance around ₹95 multiple times but was unable to break through decisively until recently.
After consolidating for a while near this level, the price finally broke out above ₹95, signaling a shift in momentum from consolidation to a potential new uptrend.
The breakout was accompanied by increased volume, which adds further validity to the breakout, as higher volume confirms stronger market participation.

Post-Breakout Action:
The price spent some time just below the major resistance (around ₹92) before the final breakout, indicating the market was gaining strength.
After the breakout, the price has shown a strong move, confirming a successful breakout and marking the start of a potential bullish run.

Targets:
Target 1: ₹100 – This is a psychological resistance level where traders might start booking some profits.
Target 2: ₹107 – A higher resistance level based on prior price action, suggesting the next potential price target if the stock continues its upward trajectory.

Stop Loss:
Stop Loss: ₹88 – Placing the stop loss just below the minor resistance/support level is a conservative way to manage risk. If the price drops below ₹88, it might signal that the breakout is failing, and the stock could return to the consolidation zone.

Volume and Momentum:
The breakout is supported by an increase in volume, as seen by the volume bars rising during the breakout, which confirms strong buying interest.
The RSI (Relative Strength Index) is currently at 64, which indicates that the stock is in a bullish zone but not yet overbought, giving further room for upward movement before it faces any potential selling pressure.