Entry Zone: We recommend accumulating Rolex Rings Ltd. in the zone of ₹1,460 - ₹1,500. This area represents a crucial retest of the broken descending channel's resistance, now acting as strong support.
Target 1 (T1): ₹1,580
Target 2 (T2): ₹1,650
Target 3 (T3): ₹1,750 (Extended target if momentum remains strong)
Stop Loss (SL): ₹1,400 (Strictly on a daily closing basis)
Rationale:
Clear Channel Breakout: The stock has executed a textbook breakout from a well-defined multi-month descending channel. This indicates a significant shift in the underlying trend from bearish to bullish.
Successful Retest: Post-breakout, the price has pulled back to retest the upper boundary of the channel, which is a classic technical confirmation of a valid breakout. The retest appears to be holding, suggesting the former resistance has turned into reliable support.
Volume Confirmation: The initial breakout was supported by decent volumes, and the current consolidation/retest phase is occurring on relatively lower volumes, which is typical before the next leg up.
RSI Bullish Momentum: The Relative Strength Index (RSI) is maintaining its position above the 50-mark and shows bullish bias, supporting the upward price momentum.
Favorable Risk-Reward: The current entry point offers an attractive risk-reward profile for a short-term trade, with the potential upside significantly outweighing the downside risk defined by the stop-loss.
Key Risk: A decisive daily closing below ₹1,400 would invalidate the bullish breakout and retest pattern, suggesting a false breakout or a resumption of the downtrend. Strict adherence to the stop-loss is advised.
Disclaimer: This report is for informational purposes only and does not constitute financial advice. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions. Equity investments are subject to market risks.
For Education purposes only
Target 1 (T1): ₹1,580
Target 2 (T2): ₹1,650
Target 3 (T3): ₹1,750 (Extended target if momentum remains strong)
Stop Loss (SL): ₹1,400 (Strictly on a daily closing basis)
Rationale:
Clear Channel Breakout: The stock has executed a textbook breakout from a well-defined multi-month descending channel. This indicates a significant shift in the underlying trend from bearish to bullish.
Successful Retest: Post-breakout, the price has pulled back to retest the upper boundary of the channel, which is a classic technical confirmation of a valid breakout. The retest appears to be holding, suggesting the former resistance has turned into reliable support.
Volume Confirmation: The initial breakout was supported by decent volumes, and the current consolidation/retest phase is occurring on relatively lower volumes, which is typical before the next leg up.
RSI Bullish Momentum: The Relative Strength Index (RSI) is maintaining its position above the 50-mark and shows bullish bias, supporting the upward price momentum.
Favorable Risk-Reward: The current entry point offers an attractive risk-reward profile for a short-term trade, with the potential upside significantly outweighing the downside risk defined by the stop-loss.
Key Risk: A decisive daily closing below ₹1,400 would invalidate the bullish breakout and retest pattern, suggesting a false breakout or a resumption of the downtrend. Strict adherence to the stop-loss is advised.
Disclaimer: This report is for informational purposes only and does not constitute financial advice. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions. Equity investments are subject to market risks.
For Education purposes only
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.