AfnanTAjuddin

ARVSMART - Breakout and Potential Retest

Long
NSE:ARVSMART   ARVIND SMARTSPACES
In this technical analysis article, we will examine the recent breakout of ARVSMART and discuss the possibility of a potential retest. It is important to note that this analysis is for educational purposes only and I am not a SEBI registered analyst. If you find this analysis helpful, please like it and leave your comments with any observations you may have.

πŸš€ Breakout Analysis πŸš€
ARVSMART displayed a beautiful breakout on June 1, 2023, accompanied by a strong bullish candle and significant volume. The stock reached an all-time high level, indicating bullish momentum. Now, it appears that the stock might be retracing the breakout with very low volumes, providing a potential entry opportunity.

πŸ’‘ Entry and Stop Loss Levels πŸ’‘
To plan our entry, we can look for a retest above the 75-minute demand zone around 350.6. If the price surpasses this level, it could signal a continuation of the upward trend. However, it is crucial to manage risk effectively. Therefore, it is recommended to set a stop loss below the 75-minute demand zone to protect against potential losses.

⚑ Maximizing Profits ⚑
Since the stock is trading at all-time high levels, it is advisable to trail the stop loss to secure profits in case of further upward movement. This strategy allows traders to lock in gains while still participating in potential future growth.

πŸ“š Key Terms Explained πŸ“š

Breakout: A price movement that surpasses a significant level of resistance or support, often indicating a potential change in trend.

Retest: The act of revisiting a previously broken support or resistance level, which may serve as a confirmation of the breakout.

Demand Zone: A price range where buying interest is likely to be strong, potentially acting as a support level during price declines.

Stop Loss: A predetermined price level at which traders exit a trade to limit potential losses.

πŸ™ Appreciation and Call to Action πŸ™
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πŸ’­ "Trade with confidence and embrace the journey to success!" πŸ’ͺπŸš€
Comment:
I suggested that we should plan our entry when the stock retests the breakout around the 350 levels. Eventually, the stock came down and tested the breakout, which triggered our entry. Within one week, the stock witnessed an upside rally of around 10% from our entry point. The stock is currently trading at its all-time high levels, with today's highest price recorded at 382.70. The sentiments surrounding the stock are highly bullish. If you want to ride the wave of substantial profit, it is crucial to trail your stop loss, as preserving profits is extremely important.
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