Hello Mates! Here’s a chart that really caught my attention this week Asian Paints showing strength after a long phase of quiet sideways movement. The structure is clean, the breakout is sharp, and the message from price action is clear momentum is shifting again.
After spending almost two years inside a broad consolidation zone between 3600 and 2600 (blue box), the stock finally formed a smaller accumulation base between 2200 and 2600 (green box). Within this base, price consistently made higher lows, hinting at renewed buying interest.
Now a strong breakout above the upper boundary of this smaller channel backed by volume confirms that buyers are regaining control.
A short term retest near 2650–2700 could offer an ideal pullback entry before continuation.
Technically two targets come into play-:
Target 1: The falling resistance trendline near ₹3100.
Target 2: falling resistance line breakout can lead this move toward 3600, which also aligns with the upper blue supply zone the same area that capped price for nearly two years.
Overall, this looks like a base-to-base transition where a fresh uptrend is emerging after a long consolidation. A sustained close above 3100 would further confirm this shift in structure.
Trading Insight-:
When higher lows meet a strong breakout, it often signals that the accumulation phase is ending and smart money is stepping back in.
Regards-- Amit.
After spending almost two years inside a broad consolidation zone between 3600 and 2600 (blue box), the stock finally formed a smaller accumulation base between 2200 and 2600 (green box). Within this base, price consistently made higher lows, hinting at renewed buying interest.
Now a strong breakout above the upper boundary of this smaller channel backed by volume confirms that buyers are regaining control.
A short term retest near 2650–2700 could offer an ideal pullback entry before continuation.
Technically two targets come into play-:
Target 1: The falling resistance trendline near ₹3100.
Target 2: falling resistance line breakout can lead this move toward 3600, which also aligns with the upper blue supply zone the same area that capped price for nearly two years.
Overall, this looks like a base-to-base transition where a fresh uptrend is emerging after a long consolidation. A sustained close above 3100 would further confirm this shift in structure.
Trading Insight-:
When higher lows meet a strong breakout, it often signals that the accumulation phase is ending and smart money is stepping back in.
Regards-- Amit.
Moderator, TradingView
(No Trading Advice)
(No Trading Advice)
Related publications
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.
Moderator, TradingView
(No Trading Advice)
(No Trading Advice)
Related publications
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.