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"Hi everyone, VCP Trader is back with an exciting investment opportunity!
Stock in Focus: Devyani International
This stock has been forming a strong base for over 3 years, creating a range of 100 points. Such prolonged consolidations often lead to explosive moves, and this setup looks like a textbook example of the Volatility Contraction Pattern (VCP).
What's Happening Inside the Base?
When we break down the structure of this base:
Clear Contraction: The stock is contracting from left to right, as evident by the tightening price ranges.
Three Distinct Legs:
The 1st leg shows a significant drop with high volatility.
The 2nd leg has reduced volatility and volume, signaling less aggressive selling.
The 3rd leg is even tighter, indicating supply drying up.
Volume Analysis: As expected in a VCP, volume has been steadily declining with each contraction, confirming institutional accumulation.
Point of Polarity
The critical point of polarity lies at 140, which is the make-or-break level for this setup.
A strong bounce from here could trigger the long-anticipated breakout.
Risk management tip: If the stock gives two consecutive weekly closes below 140, it would invalidate the bullish setup, and we would change our bias.
Target Projection
Using the base measurement of 100 points, we can anticipate an up move of 50-60%, projecting a target of 300 or more. This aligns perfectly with the price-action dynamics of similar VCP setups in the past.
Why Does This Matter?
Prolonged Accumulation: A base of this length (3 years) builds a significant cause (institutional positioning), which often results in an equally significant effect (large price movement).
2025 Breakout Potential: Such setups rarely fail when the structure is intact, making 2025 a pivotal year for Devyani International.
Low-Risk, High-Reward Opportunity: Entering near the breakout point or close to 140 offers an excellent risk-to-reward ratio.
Final Thoughts
This is a perfect VCP setup for traders and investors alike. With a well-defined range, clear contraction, and a breakout projection, this stock is on the verge of a significant move.
Stay disciplined and stick to the plan:
Entry: Near the breakout above the top of the base.
Stop Loss: Below 140 (point of polarity).
Target: Above 300 in 2025.
Keep this on your radar—it’s shaping up to be a potential game-changer! 🚀
#VCP #StockAnalysis #DevyaniInternational #Breakout #InvestmentOpportunity #TechnicalAnalysis
Stock in Focus: Devyani International
This stock has been forming a strong base for over 3 years, creating a range of 100 points. Such prolonged consolidations often lead to explosive moves, and this setup looks like a textbook example of the Volatility Contraction Pattern (VCP).
What's Happening Inside the Base?
When we break down the structure of this base:
Clear Contraction: The stock is contracting from left to right, as evident by the tightening price ranges.
Three Distinct Legs:
The 1st leg shows a significant drop with high volatility.
The 2nd leg has reduced volatility and volume, signaling less aggressive selling.
The 3rd leg is even tighter, indicating supply drying up.
Volume Analysis: As expected in a VCP, volume has been steadily declining with each contraction, confirming institutional accumulation.
Point of Polarity
The critical point of polarity lies at 140, which is the make-or-break level for this setup.
A strong bounce from here could trigger the long-anticipated breakout.
Risk management tip: If the stock gives two consecutive weekly closes below 140, it would invalidate the bullish setup, and we would change our bias.
Target Projection
Using the base measurement of 100 points, we can anticipate an up move of 50-60%, projecting a target of 300 or more. This aligns perfectly with the price-action dynamics of similar VCP setups in the past.
Why Does This Matter?
Prolonged Accumulation: A base of this length (3 years) builds a significant cause (institutional positioning), which often results in an equally significant effect (large price movement).
2025 Breakout Potential: Such setups rarely fail when the structure is intact, making 2025 a pivotal year for Devyani International.
Low-Risk, High-Reward Opportunity: Entering near the breakout point or close to 140 offers an excellent risk-to-reward ratio.
Final Thoughts
This is a perfect VCP setup for traders and investors alike. With a well-defined range, clear contraction, and a breakout projection, this stock is on the verge of a significant move.
Stay disciplined and stick to the plan:
Entry: Near the breakout above the top of the base.
Stop Loss: Below 140 (point of polarity).
Target: Above 300 in 2025.
Keep this on your radar—it’s shaping up to be a potential game-changer! 🚀
#VCP #StockAnalysis #DevyaniInternational #Breakout #InvestmentOpportunity #TechnicalAnalysis
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