ANANTRAJ Made a Beautiful Chart Structure of a Triple Bottom reversal pattern, Sort of Inverse H&S confirmation and Trendline BO. Post Excellent Q4 Results, with Good Price and Volume action.Price Action:
- It experienced a sharp decline in January 2025, falling from ₹950 to the ₹550 level.
- Further correction took it to lows near ₹420 in March-May 2025
- Currently showing signs of recovery at ₹514.10, up ₹40.50 (+8.55%) in today's session.
- Breaking above the descending trendline (white diagonal).
- Multiple tests of the ₹420-430 support zone created a solid base
Volume Analysis:
- Today's volume at 7.79M shares vs. average of 2.93M (over 2.5x normal volume)
- Previous support bounces (green arrows) also saw increased volume
- Strong volume accompanying the breakout indicates conviction behind the move
- Volume expansion during upward movements signals the accumulation phase
Key Support and Resistance:
- Strong support established at ₹420-430 zone (green horizontal line)
- Intermediate resistance at ₹550 level (lower red horizontal line)
- Major resistance at ₹630-640 zone (upper red horizontal line)
- Multiple rejection points at these resistance levels (red arrows)
- Historical resistance at ₹935-950 from December-January (top red line)
Technical Patterns:
1. Triple Bottom- Formed at ₹420-430 level (March, April, May - green arrows)
2. Descending Trendline Breakout- Price breaking above the multi-month downtrend line
3. Somewhat Inverse Head & Shoulders- Potentially forming with:
- Left shoulder (February-March)
- Head (April)
- Right shoulder (May)
- Neckline around ₹520-530
4. Sort of Range Breakout- Escaping from the ₹420-500 trading range
Trade Setup:
- Pattern: Trendline breakout + potential inverse H&S completion
- Confirmation: Strong price action above ₹500 with volume expansion
- Context: Reversal setup after extended downtrend and base formation
Entry Points:
1. Aggressive Entry: Current price (₹514.10) with partial position
2. Pullback Entry: On retest of breakout level ₹490-500
3. Confirmation Entry: On close above ₹550 (previous resistance level)
Exit Strategy
- Target 1: ₹550 (immediate resistance)
- Target 2: ₹630-640 (major resistance zone)
- Target 3: ₹750 (intermediate target based on pattern projection)
- Ultimate Target: ₹935-950 (previous ATH high)
- Trailing Stop: Implement a 5% trailing stop after Target 1 is achieved
Stop Loss Placement:
- Aggressive Stop: ₹480 (below recent swing low)
- Conservative Stop: ₹450 (midpoint of recent range)
- Pattern-Based Stop: ₹420 (below the triple bottom support)
Risk Management:
- Position sizing: Limit risk to 1-2% of trading capital
- Risk-reward ratio: Minimum 1:1.5 (with aggressive stop)
- Consider the pyramiding approach: add to the position as each resistance level is cleared
- Scale out: 30% at Target 1, 30% at Target 2, hold remainder with trailing stop
The stock shows a compelling technical setup with its triple bottom pattern, trendline breakout, and high-volume surge. The inverse head and shoulders pattern, if completed with a move above ₹550, would further confirm the reversal thesis. Multiple tests of support with increasing volume on the recovery suggest institutional interest is building in the stock.
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NO RECO. For Buy/Sell.
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Disclaimer: "I am not SEBI REGISTERED RESEARCH ANALYST AND INVESTMENT ADVISER."
This analysis is intended solely for informational and educational purposes and should not be interpreted as financial advice. It is advisable to consult a qualified financial advisor or conduct thorough research before making investment decisions.
Nota
DOJI 1% UPNota
Down 2% After Doji still above BO Candle, Trendline and SupportDagangan aktif
Gave a Swing of 3% and consolidating the inner range. Nota
Making a Flag Nota
Gave a Swing of 3.4% and is consolidating the inner range.Nota
Another Day of Tightness. Big BO on Either Side PossibleDagangan ditutup: sasaran tercapai
Target 1: ₹550 (immediate resistance) ReachedPullback Entry: On retest of breakout level ₹490-500 Active.
""Another Day of Tightness. Big BO on Either Side Possible"" Was Updated Yesterday, today it broke above it.
Up 7% From RECO
Nota
Gave a Swing of 10.68% from RECOConfirmation Entry: On close above ₹550 (previous resistance level) Active
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