Cipla has been trading in a range from last 6 months.We have definite supply and demand zone at 870-885 and 980-997 respectively.Expecting an upside breakout after looking at today's price action.Reasons for upside breakout are as follow's
1)Stock has been in an up trend,and has previously given similar range breakout's on the upside
2)During every fall time taken by price to reach demand zone is more then previous fall took to reach,meaning fading selling momentum
3)In the third fall price reversed before entering demand zone meaning buyers have became aggressive.
4)During 2nd rise we have seen price breaching supply zone .
5)During 3rd rise (from las t 2 day's)it seems like it will take less time to reach demand zone then previous rise again meaning aggressive buying or upside momentum build up.
6)Notice the volume ,through out this range volume's have been falling but in today's trading session we are seeing volume spike along with big up move again indicating buying.
It would be aggressive trade to enter long at current levels and ideally one should wait for an upside breakout,close above 1000 for taking long trade.However entering at current price 975 would favour better risk reward,hence one can enter stock and take 30% position keeping 870 as initial stop-loss on closing basis on the down side which should be trailed once we get breakout on the upside,And add another 30% if we get a dip towards 940 and wait for breakout to take remaining 40% position.On the other end if stock doesnt give us a dip then one should take remaining 70% position on breakout and if it re-enters our supply zone meaning prices comes back below 980,then one should exit long.
Upside range breakout target is coming at 1125.
Disclaimer:View provided over here are just for my future referecnce purpose,no position should be build or exited on it's basis.
1)Stock has been in an up trend,and has previously given similar range breakout's on the upside
2)During every fall time taken by price to reach demand zone is more then previous fall took to reach,meaning fading selling momentum
3)In the third fall price reversed before entering demand zone meaning buyers have became aggressive.
4)During 2nd rise we have seen price breaching supply zone .
5)During 3rd rise (from las t 2 day's)it seems like it will take less time to reach demand zone then previous rise again meaning aggressive buying or upside momentum build up.
6)Notice the volume ,through out this range volume's have been falling but in today's trading session we are seeing volume spike along with big up move again indicating buying.
It would be aggressive trade to enter long at current levels and ideally one should wait for an upside breakout,close above 1000 for taking long trade.However entering at current price 975 would favour better risk reward,hence one can enter stock and take 30% position keeping 870 as initial stop-loss on closing basis on the down side which should be trailed once we get breakout on the upside,And add another 30% if we get a dip towards 940 and wait for breakout to take remaining 40% position.On the other end if stock doesnt give us a dip then one should take remaining 70% position on breakout and if it re-enters our supply zone meaning prices comes back below 980,then one should exit long.
Upside range breakout target is coming at 1125.
Disclaimer:View provided over here are just for my future referecnce purpose,no position should be build or exited on it's basis.