COLPAL – Bullish Breakout from Falling Wedge|Order block Retest
📊 COLPAL (1D) – Falling Wedge Breakout with Orderblock Retest
Colgate-Palmolive (India) has been in a steady downtrend for months, but recent price action suggests a shift in market structure. After forming a Falling Wedge, the stock has now broken out to the upside, a classic bullish reversal pattern.
🔎 Observations
Falling Wedge Formation: Price compressed within the wedge since Oct 2024, with lower highs and lower lows gradually converging. This usually signals weakening seller momentum.
Breakout Confirmation: A strong bullish candle pushed above the wedge resistance, confirming the breakout.
Orderblock Support: The last bullish orderblock around ₹2,250–₹2,180 has acted as demand, rejecting price higher on retest. This adds confluence to the bullish setup.
Volume Analysis: Breakout was supported by an increase in volume, showing institutional participation.
Market Structure: The first higher low is now in place. If price makes a higher high above ₹2,400, it would further confirm a potential trend reversal.
📈 Trading Plan & Targets
Entry Zone: CMP
Stop Loss: Below 2,150 (orderblock invalidation)
Target 1: 2,700 (first resistance zone)
Target 2: 3,075 (major psychological + structural resistance)
⚠️ Risk Management:
Since the stop loss is relatively small compared to upside targets, this setup offers a favorable Risk:Reward ratio of ~1:3 to 1:4. However, always scale positions responsibly to control risk.
📌 Invalidation Levels:
If the stock sustains below 2,150, the bullish thesis will be invalidated, and the trend may continue sideways or resume downward.
🔥 Summary
COLPAL has shown a textbook breakout from a Falling Wedge pattern, retested its bullish orderblock, and bounced with volume confirmation. This indicates that long positions can be considered as long as ₹2,150 holds. Upside targets of ₹2,700 and ₹3,075+ remain in play.
Colgate-Palmolive (India) has been in a steady downtrend for months, but recent price action suggests a shift in market structure. After forming a Falling Wedge, the stock has now broken out to the upside, a classic bullish reversal pattern.
🔎 Observations
Falling Wedge Formation: Price compressed within the wedge since Oct 2024, with lower highs and lower lows gradually converging. This usually signals weakening seller momentum.
Breakout Confirmation: A strong bullish candle pushed above the wedge resistance, confirming the breakout.
Orderblock Support: The last bullish orderblock around ₹2,250–₹2,180 has acted as demand, rejecting price higher on retest. This adds confluence to the bullish setup.
Volume Analysis: Breakout was supported by an increase in volume, showing institutional participation.
Market Structure: The first higher low is now in place. If price makes a higher high above ₹2,400, it would further confirm a potential trend reversal.
📈 Trading Plan & Targets
Entry Zone: CMP
Stop Loss: Below 2,150 (orderblock invalidation)
Target 1: 2,700 (first resistance zone)
Target 2: 3,075 (major psychological + structural resistance)
⚠️ Risk Management:
Since the stop loss is relatively small compared to upside targets, this setup offers a favorable Risk:Reward ratio of ~1:3 to 1:4. However, always scale positions responsibly to control risk.
📌 Invalidation Levels:
If the stock sustains below 2,150, the bullish thesis will be invalidated, and the trend may continue sideways or resume downward.
🔥 Summary
COLPAL has shown a textbook breakout from a Falling Wedge pattern, retested its bullish orderblock, and bounced with volume confirmation. This indicates that long positions can be considered as long as ₹2,150 holds. Upside targets of ₹2,700 and ₹3,075+ remain in play.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.