📊 Trade Idea: Long on Nifty Auto Index (CNXAUTO)
🕵️♂️ Technical Analysis Overview:
Breakout: The index has broken out of a falling channel pattern (marked in blue), indicating a potential trend reversal from bearish to bullish.
Current Price: ₹23,953.15
Target 1: ₹24,140.85 (near-term resistance; also a previous swing high)
Target 2: ₹27,624.25 (major resistance zone from previous high)
Support Level: Around ₹22,800 (recent breakout retest/support zone)
Trendline Support: Long-term rising yellow trendline acting as dynamic support.
🛒 Trade Setup:
📥 Entry:
On a retest of ₹23,400–₹23,500 zone for better risk-reward, or
Immediate entry if momentum continues above ₹24,000 with volume confirmation.
🎯 Targets:
Target 1: ₹24,140 (conservative/near resistance)
Target 2: ₹27,624 (bullish extension, based on previous highs)
🛡️ Stop Loss:
Conservative: Below ₹22,800 (breakout level)
Aggressive: Below ₹23,000 (recent minor swing low)
🧮 Risk-Reward Ratio:
Target 1: ~1.5:1
Target 2: ~3:1 or better (ideal for swing traders)
📅 Time Horizon:
Target 1: 1–2 weeks
Target 2: 4–8 weeks (medium-term swing trade)
⚠️ Risk Factors:
General market volatility (e.g., elections, global cues)
Auto sector-specific news (policy, sales data)
If price falls back into the previous downtrend channel, invalidation likely
🕵️♂️ Technical Analysis Overview:
Breakout: The index has broken out of a falling channel pattern (marked in blue), indicating a potential trend reversal from bearish to bullish.
Current Price: ₹23,953.15
Target 1: ₹24,140.85 (near-term resistance; also a previous swing high)
Target 2: ₹27,624.25 (major resistance zone from previous high)
Support Level: Around ₹22,800 (recent breakout retest/support zone)
Trendline Support: Long-term rising yellow trendline acting as dynamic support.
🛒 Trade Setup:
📥 Entry:
On a retest of ₹23,400–₹23,500 zone for better risk-reward, or
Immediate entry if momentum continues above ₹24,000 with volume confirmation.
🎯 Targets:
Target 1: ₹24,140 (conservative/near resistance)
Target 2: ₹27,624 (bullish extension, based on previous highs)
🛡️ Stop Loss:
Conservative: Below ₹22,800 (breakout level)
Aggressive: Below ₹23,000 (recent minor swing low)
🧮 Risk-Reward Ratio:
Target 1: ~1.5:1
Target 2: ~3:1 or better (ideal for swing traders)
📅 Time Horizon:
Target 1: 1–2 weeks
Target 2: 4–8 weeks (medium-term swing trade)
⚠️ Risk Factors:
General market volatility (e.g., elections, global cues)
Auto sector-specific news (policy, sales data)
If price falls back into the previous downtrend channel, invalidation likely
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.