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Libas - Potential Bullish Divergence in Descending Triangle

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Libas Designs Ltd. is currently trading within a descending triangle pattern. A potential bullish divergence between the price action and the RSI could indicate an upcoming trend reversal.

Technical Analysis:

  • Descending Triangle Pattern: The stock has been consolidating within a descending triangle pattern, characterized by lower highs and a strong support level around ₹16.5.
  • Lower Low in Price: The price recently made a lower low, near the support level of the triangle.
  • Higher Low in RSI: Simultaneously, the RSI (14) made a higher low, creating a bullish divergence. This suggests that the selling pressure is weakening, despite the price making a new low.
  • Volume Analysis: Volume has been decreasing during the formation of the triangle, which is typical for this pattern and indicates a potential buildup before a breakout.


Trade Setup:

  • Entry Point: I would wait for a breakout and retest above the top trendline. Probably somewhere above the 17.5 mark.
  • Stop Loss: A stop loss below ₹16.00, just under the recent support level, to manage risk effectively.


Disclaimer: This analysis is for educational purposes and should not be considered financial advice.
Nota
Price closed above the trendline today.
Nota
Looks like the Re-test is complete. Let's see over the coming days.

Disclosure: Invested
Nota
>20% up as of now.
gurinder1988
Juga pada:
Bullish DivergenceDescending TriangleLIBASnsenseindiansestocksOscillatorsSupport and ResistanceTriangle

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.
Bullish DivergenceDescending TriangleLIBASnsenseindiansestocksOscillatorsSupport and ResistanceTriangle
gurinder1988
Juga pada:

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.