Looking at the daily timeframe for Deepa Jewellers Limited, we are observing a compelling bullish setup.
The stock has successfully broken out of a consolidation phase, making it a strong candidate for a long position.
Technical Analysis & Reasoning:
To validate this setup, we are looking at two primary technical drivers:
Horizontal Resistance Breakout: The primary catalyst for this idea is the decisive breakout above the crucial resistance line at ₹221.20.
This level previously acted as a strong supply zone, rejecting upward movement.
The recent price action has pushed through this barrier with authority.
Momentum & Price Action: The breakout is supported by robust bullish candles closing near their highs.
Furthermore, prior to the breakout, the stock formed a solid base around the ₹170 region and printed higher lows leading up to the resistance test, indicating steady institutional accumulation.
Trade Plan:
Bias: Long
Entry Point: The current market price (CMP) is ₹245.25.
Because the price has already moved significantly past the breakout line, a prudent approach is a staggered entry.
You can consider initiating a partial position at CMP and adding on a pullback retest towards the ₹230 - ₹235 zone.
Target: Projecting the depth of the previous consolidation range (roughly ₹50) upwards from the breakout level gives us a logical technical target of ₹270 - ₹275.
Stop Loss: To manage risk, a stop loss should be placed at ₹215 on a daily closing basis.
If the price falls back below the ₹221.20 breakout line and sustains below it, it indicates a false breakout and invalidates the bullish thesis.
Estimated Duration: Short to medium-term swing trade (2 to 4 weeks).
The stock has successfully broken out of a consolidation phase, making it a strong candidate for a long position.
Technical Analysis & Reasoning:
To validate this setup, we are looking at two primary technical drivers:
Horizontal Resistance Breakout: The primary catalyst for this idea is the decisive breakout above the crucial resistance line at ₹221.20.
This level previously acted as a strong supply zone, rejecting upward movement.
The recent price action has pushed through this barrier with authority.
Momentum & Price Action: The breakout is supported by robust bullish candles closing near their highs.
Furthermore, prior to the breakout, the stock formed a solid base around the ₹170 region and printed higher lows leading up to the resistance test, indicating steady institutional accumulation.
Trade Plan:
Bias: Long
Entry Point: The current market price (CMP) is ₹245.25.
Because the price has already moved significantly past the breakout line, a prudent approach is a staggered entry.
You can consider initiating a partial position at CMP and adding on a pullback retest towards the ₹230 - ₹235 zone.
Target: Projecting the depth of the previous consolidation range (roughly ₹50) upwards from the breakout level gives us a logical technical target of ₹270 - ₹275.
Stop Loss: To manage risk, a stop loss should be placed at ₹215 on a daily closing basis.
If the price falls back below the ₹221.20 breakout line and sustains below it, it indicates a false breakout and invalidates the bullish thesis.
Estimated Duration: Short to medium-term swing trade (2 to 4 weeks).
Trade closed: stop reached
Stoploss hit...
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.