Looking at the Monthly timeframe, Birlasoft Limited has undergone a significant corrective phase after rejecting its historical highs.
The stock is currently trading at 274.05, bringing it down to test a major multi-year horizontal support zone.
This specific zone is structurally significant because it acted as a major resistance level in 2021 before the stock broke out.
We are now seeing a classic "resistance-turned-support" flip, making this a critical area to watch for a potential bullish reversal and accumulation.
Trade Plan:
Entry Point: The current price level (between 267.00 and 275.00) offers an optimal entry right at structural support.
Target 1: The first major upside objective is the intermediate resistance zone, marked by the red line at 564.20.
Target 2: If the broader bullish trend resumes, the ultimate long-term target is a retest of the upper red resistance line at 825.85.
Stop Loss: A strict invalidation level is necessary to manage risk.
A monthly candle close below the 250.00 – 260.00 area would break this critical multi-year support structure and invalidate the bullish thesis.
The stock is currently trading at 274.05, bringing it down to test a major multi-year horizontal support zone.
This specific zone is structurally significant because it acted as a major resistance level in 2021 before the stock broke out.
We are now seeing a classic "resistance-turned-support" flip, making this a critical area to watch for a potential bullish reversal and accumulation.
Trade Plan:
Entry Point: The current price level (between 267.00 and 275.00) offers an optimal entry right at structural support.
Target 1: The first major upside objective is the intermediate resistance zone, marked by the red line at 564.20.
Target 2: If the broader bullish trend resumes, the ultimate long-term target is a retest of the upper red resistance line at 825.85.
Stop Loss: A strict invalidation level is necessary to manage risk.
A monthly candle close below the 250.00 – 260.00 area would break this critical multi-year support structure and invalidate the bullish thesis.
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.
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.