Looking at the weekly timeframe for Neogen Chemicals Ltd., the stock has demonstrated a powerful technical breakout.
The price has decisively crossed and closed above a major horizontal resistance line at 2,353.6.
This level previously acted as a strong ceiling, and overcoming it signifies a major shift in market structure from accumulation to markup.
The breakout is supported by a highly bullish weekly candlestick pushing the price to 2,723.4, marking a substantial gain of +14.52% for the period.
Additionally, the volume on this breakout leg is notable at 1.27M, confirming strong buying interest and institutional participation.
The preceding price action shows a textbook recovery from the lows near 1,000, forming higher highs and higher lows before accelerating through the resistance zone.
Trade Plan:
Entry Point: The breakout is already underway at the Current Market Price (CMP) of 2,723.4. Aggressive traders can enter here, while conservative traders might wait for a minor pullback or retest of the breakout zone between 2,400 and 2,500 to optimize the risk-to-reward ratio.
Target: Based on the depth of the prior consolidation pattern (measuring from the 1,000 base to the 2,350 breakout level), the long-term measured move suggests significant upside potential.
Target 1: 3,200 (Psychological resistance and conservative swing target).
Target 2: 3,600+ (Based on full pattern extension).
Stop Loss: Strict risk management is essential.
A logical Stop Loss should be placed below the structural breakout line.
A weekly close below 2,250 (just under the 2,353.6 support line and the recent consolidation block) would invalidate the bullish thesis and suggest a false breakout.
The price has decisively crossed and closed above a major horizontal resistance line at 2,353.6.
This level previously acted as a strong ceiling, and overcoming it signifies a major shift in market structure from accumulation to markup.
The breakout is supported by a highly bullish weekly candlestick pushing the price to 2,723.4, marking a substantial gain of +14.52% for the period.
Additionally, the volume on this breakout leg is notable at 1.27M, confirming strong buying interest and institutional participation.
The preceding price action shows a textbook recovery from the lows near 1,000, forming higher highs and higher lows before accelerating through the resistance zone.
Trade Plan:
Entry Point: The breakout is already underway at the Current Market Price (CMP) of 2,723.4. Aggressive traders can enter here, while conservative traders might wait for a minor pullback or retest of the breakout zone between 2,400 and 2,500 to optimize the risk-to-reward ratio.
Target: Based on the depth of the prior consolidation pattern (measuring from the 1,000 base to the 2,350 breakout level), the long-term measured move suggests significant upside potential.
Target 1: 3,200 (Psychological resistance and conservative swing target).
Target 2: 3,600+ (Based on full pattern extension).
Stop Loss: Strict risk management is essential.
A logical Stop Loss should be placed below the structural breakout line.
A weekly close below 2,250 (just under the 2,353.6 support line and the recent consolidation block) would invalidate the bullish thesis and suggest a false breakout.
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.