GRASIM Bullish Setup: Key AOI Levels and Reversal Trade Plan

3 Ogo

GRASIM Industries Ltd is currently forming a potential bullish reversal structure as it approaches a key structural AOI (Area of Interest) zone on the daily chart. This post outlines the complete trade setup, including price action analysis, important zones to monitor, trade plan, and conditions under which the setup could fail.
Key Observations
1. Weekly AOI – Support Zone

• Range: Around ₹2,675 to ₹2,701
  
• This green zone represents a strong weekly demand area, acting as a base for potential reversal.
  
• Aligned with the psychological level of ₹2,700, this zone has historically acted as a strong pivot.

2. 2H Structure Shift AOI Zone

• Level: ₹2,752.10
  
• This level marks the intraday structure breakout zone on the 2-hour chart.
  
• A successful breakout followed by a retest and bullish candlestick pattern may trigger confirmation for a long position.
  
• Suggested lower timeframes for confirmation: 2HR, 1HR, and 30 Min.

3. Weekly AOI – Resistance Zone

• Range: ₹2,875 to ₹2,925
  
• The upside potential is capped at this resistance area, making it an ideal zone for partial or full profit booking.

Trade Plan Breakdown
Projected Move:

• Price is currently hovering below the intraday structure shift.
  
• If the price breaks above the ₹2,752 level, traders should wait for a pullback and confirmation in the form of a bullish candle on lower timeframes.
  
• Post-confirmation, an upward move toward the weekly resistance zone is projected.

Entry Strategy

• Trigger: Break and retest of the ₹2,752.10 level.
  
• Confirmation: Bullish candlestick pattern (Pin Bar, Engulfing, or Morning Star) on 30 Min – 2HR timeframe.
  
• Stop-Loss: Below the structure AOI or below ₹2,700.
  
• Target 1: ₹2,875 (Near top of Weekly AOI – Resistance)
  
• Target 2: ₹2,900+ (Aggressive target within resistance zone)

Setup Invalidation Level

• If the price starts trading below ₹2,700, especially with strong bearish momentum, the setup fails.
  
• In that case, price may revisit lower zones, and traders should refrain from taking long positions.

Technical Confluence

• EMA 200 Support: Current price is significantly above the EMA 200 (₹2,618), indicating long-term bullish momentum.
  
• Psychological Level ₹2700: Key psychological round number acting as a magnet and support.
  
• Intraday structure shift: The break of lower timeframe structure adds strength to the setup

Risk Management Guidelines

• Position Sizing: Do not risk more than 1-2% of capital per trade.
  
• Wait for Confirmation: Avoid premature entries without bullish candlestick confirmation.
  
• Trail Your Stop-Loss: After price moves into profit zone, trail SL to protect capital.

GRASIM Industries is showing signs of potential reversal and strength near the ₹2,700 zone. The structure shift on the 2-hour chart provides a bullish opportunity, but entry must be cautious and confirmation-based. With a solid risk-to-reward ratio, this could be a textbook breakout-retest trade if conditions align.

6 Ogo

Nota

Potential Reversal near breakout level