Looking at the weekly timeframe for Aarey Drugs & Pharmaceuticals Ltd., the stock has clearly broken out above a major horizontal resistance level at 98.47.
As seen in the chart, 98.47 level previously acted as a strong supply zone, rejecting the price and forcing a prolonged period of consolidation.
The recent price action demonstrates a decisive weekly close above this resistance, indicating strong bullish momentum.
Furthermore, the breakout is accompanied by supportive buying volume, which adds validity to the move rather than it being a false breakout.
Here is a breakdown of a potential trade plan based on this technical structure:
Entry Point: The current market price is hovering around 103.85.
An entry can be considered at these current levels, or ideally, on a slight pullback to retest the breakout zone between 98.50 and 100.00.
Retests often provide a better risk-to-reward ratio.
Stop Loss: To manage risk effectively, a stop loss should be placed below the breakout candle or the immediate structural support.
An SL around 94.00 provides enough breathing room while ensuring the setup is invalidated if the price falls heavily back into the previous consolidation range.
Target: Using a measured move calculation based on the depth of the prior consolidation (from the lows near 56.00 to the resistance at 98.47, roughly a 42-point range), projecting this from the breakout level gives a primary target zone of 135.00 - 140.00.
As seen in the chart, 98.47 level previously acted as a strong supply zone, rejecting the price and forcing a prolonged period of consolidation.
The recent price action demonstrates a decisive weekly close above this resistance, indicating strong bullish momentum.
Furthermore, the breakout is accompanied by supportive buying volume, which adds validity to the move rather than it being a false breakout.
Here is a breakdown of a potential trade plan based on this technical structure:
Entry Point: The current market price is hovering around 103.85.
An entry can be considered at these current levels, or ideally, on a slight pullback to retest the breakout zone between 98.50 and 100.00.
Retests often provide a better risk-to-reward ratio.
Stop Loss: To manage risk effectively, a stop loss should be placed below the breakout candle or the immediate structural support.
An SL around 94.00 provides enough breathing room while ensuring the setup is invalidated if the price falls heavily back into the previous consolidation range.
Target: Using a measured move calculation based on the depth of the prior consolidation (from the lows near 56.00 to the resistance at 98.47, roughly a 42-point range), projecting this from the breakout level gives a primary target zone of 135.00 - 140.00.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.