Venus Pipes Explodes 12% Breaking Out of 6-Month Base

23 Mei

VENUSPIPES Explodes 12%: Breaking Out of 6-Month Base Could Target ₹1,600 as it made a Beautiful Chart Structure Just Before Q4 FY25 Results.

Price Action Analysis

VENUSPIPES is experiencing a significant breakout moment, currently trading at ₹1,452.00 with an impressive 12.37% gain (₹159.80). The stock has decisively broken above a critical resistance zone around ₹1,400-1,420 after consolidating in a well-defined base for nearly six months. This breakout comes with strong momentum and represents a potential shift from accumulation to the markup phase.

Volume Analysis:

Volume is exceptionally strong at 626.33K shares compared to the average of 85.02K - nearly 7.5x times normal volume. This massive surge in participation validates the breakout and suggests institutional buying interest. The volume spike coinciding with the price breakout is a textbook confirmation signal that significantly increases the probability of continuation.

Key Support & Resistance Levels:

- Newly Broken Resistance: ₹1,400-1,420 zone (now potential support)
- Next Major Resistance: ₹1,500-1,520 (psychological level and previous resistance)
- Ultimate Target Resistance: ₹1,900-1,950 (red horizontal line - major resistance from earlier highs)
- Strong Base Support: ₹1,100-1,150 zone (multiple green arrows showing successful tests)
- Immediate Support: ₹1,380-1,400 (previous resistance becomes support)

Technical Patterns:

1. Rectangle Breakout: Clean break above the 6-month consolidation range (₹1,100-1,420)
2. Multiple Bottom Formation: Several tests of the ₹1,100-1,150 support zone (marked with green arrows)
3. Ascending Triangle: Recent price action shows higher lows approaching the ₹1,420 resistance
4. Volume Breakout Pattern: Classic high-volume breakout from a prolonged base

Trade Setup - Breakout Continuation
Primary Entry Strategy:
- Entry Point: ₹1,440-1,460 (current levels or minor pullback)
- Aggressive Entry: ₹1,420-1,430 (on any retest of breakout level)

Target Levels:
- First Target: ₹1,520-1,540 (psychological resistance and measured move)
- Second Target: ₹1,650-1,680 (extension target based on base width)
- Ultimate Target: ₹1,800-1,850 (major resistance zone approach)

Risk Management:
- Stop Loss: ₹1,350 (below the breakout zone and recent support)
- Tight Stop: ₹1,390 for short-term traders
- Position Size: Maximum 2-3% of portfolio at risk

Alternative Setup - Conservative Approach
For risk-averse traders:
- Entry: ₹1,480-1,500 (after clearing first resistance convincingly)
- Stop Loss: ₹1,420 (below confirmed breakout level)
- Targets: ₹1,600, ₹1,750

Pattern Analysis:
The stock has formed a solid 6-month base between ₹1,100-1,420, allowing for significant accumulation. The multiple tests of support around ₹1,100-1,150 (green arrows) demonstrate strong buying interest at lower levels. The recent ascending triangle formation within the larger rectangle pattern suggests building momentum that has now been released.

Risk-Reward Assessment:
- Primary Setup R:R: 1:2.8 (Entry ₹1,450, Stop ₹1,350, Target ₹1,730)
- Breakout Target: Rectangle pattern suggests potential for 25-30% move
- Failure Risk: Breakdown below ₹1,380 would invalidate the bullish setup

Key Technical Factors:
The convergence of multiple bullish signals - rectangle breakout, volume confirmation, successful base building, and momentum surge - creates a high-probability setup. The stock has spent considerable time building this base, and the breakout with such strong volume suggests genuine institutional participation rather than retail speculation.

Trading Strategy:
Traders should look for any minor pullbacks to the ₹1,420-1,440 zone as ideal entry opportunities. The key is to ensure the breakout level holds as support. A sustained move above ₹1,500 would confirm the pattern and likely attract momentum buying, potentially accelerating the move toward the ₹1,650-1,700 zone.

Monitor for any evening star or shooting star patterns at resistance levels, which could signal temporary exhaustion and provide profit-taking opportunities.

Keep in the Watchlist.
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.

26 Mei

Dagangan aktif

Gave a Swing of 6% from RECO
First Target: ₹1,520-1,540 (psychological resistance and measured move) Reached.

27 Mei

Nota

Inside Day

28 Mei

Nota

Aggressive Entry: ₹1,420-1,430 (on any retest of breakout level) Active
Down -2.5% from RECO.

29 Mei

Dagangan ditutup: hentian tercapai

Tight Stop: ₹1,390 for short-term traders Hit.
Down -4.3% from RECO

30 Mei

Nota

Down -1.98% from RECO