COAL INDIA LTDLong
Coal India. Buy the Dip?
Stock: Coal India (COALINDIA)
Current Price: ₹385.05
Technical Analysis:
1⃣ Descending Channel: The stock is trading within a descending channel, forming a base with a potential double-bottom pattern.
2⃣Structure: Lower Lows (LL) and Lower Highs (LH). The overall market structure remains weak.
3⃣200-DMA: Stock is trading below its 200-day moving average, indicating caution for bullish momentum.
Trading Plan:
Key Observations:
Dividend Payout: Suitable for long-term investors accumulating during dips.
Weakness Trigger: A weekly close below ₹360 could indicate further downside. Risky traders may short below this level.
RSI: Needs improvement to signal bullish strength.
Momentum Play: Not recommended for short-term traders. Wait for structural change above ₹400.
What to Watch During Breakout?
Volume Surge: Wide-range breakout candle backed by 3x-5x average volumes.
Sustainability: Ensure a close above ₹400 to confirm a breakout.
Disclaimer:
This analysis is for educational purposes only. Always conduct your own analysis and consult a financial advisor before trading. Trade responsibly and manage risks.
Current Price: ₹385.05
Technical Analysis:
1⃣ Descending Channel: The stock is trading within a descending channel, forming a base with a potential double-bottom pattern.
2⃣Structure: Lower Lows (LL) and Lower Highs (LH). The overall market structure remains weak.
3⃣200-DMA: Stock is trading below its 200-day moving average, indicating caution for bullish momentum.
Trading Plan:
- Entry: Above ₹400.30 on a breakout candle backed by 3x-5x volume.
- Stop Loss (SL): ₹352.55 (closing basis).
- Target Levels:
- T1: ₹428.30 (7.00%, R:R 0.8:1)
- T2: ₹458.50 (14.55%, R:R 1.6:1)
- Positional T1: ₹517.20 (29.20%, R:R 3.7:1)
- Positional T2 (ATH): ₹544.30 (36.00%, R:R 4.7:1)
Key Observations:
Dividend Payout: Suitable for long-term investors accumulating during dips.
Weakness Trigger: A weekly close below ₹360 could indicate further downside. Risky traders may short below this level.
RSI: Needs improvement to signal bullish strength.
Momentum Play: Not recommended for short-term traders. Wait for structural change above ₹400.
What to Watch During Breakout?
Volume Surge: Wide-range breakout candle backed by 3x-5x average volumes.
Sustainability: Ensure a close above ₹400 to confirm a breakout.
Disclaimer:
This analysis is for educational purposes only. Always conduct your own analysis and consult a financial advisor before trading. Trade responsibly and manage risks.
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Disclaimer
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