Divi's Lab: Potential Upswing as VCP Pattern Nears Breakout with

Nov 6, 2024

Stock: Divi's Laboratories Ltd. (DIVISLAB)

Analysis:
Divi's Lab recently experienced a breakout with strong volume, signaling solid buying interest. Since then, the stock has seen some corrective movement, presenting a potential opportunity. The current pattern resembles a Volatility Contraction Pattern (VCP), where price consolidates in narrowing ranges, often a setup for a continuation in the direction of the previous breakout.

If this contraction phase concludes with another breakout on increased volume, it could indicate a fresh upswing and a strong bullish trend resumption.

Technical Setup:

Pattern: Volatility Contraction Pattern (VCP)
Key Signal: Volume spike during breakout
Expected Move: Upside continuation if breakout confirms with volume
Trade Plan:

Entry: On breakout above current resistance, ideally with a high volume candle
Target: Initial target based on previous resistance levels or recent highs
Stop Loss: Below the consolidation range

Dec 2, 2024

Trade active

Already in good profits now, keep trailing,
Safe can book profits,
others can book partial profits and keep trailing remaining for more

Dec 4, 2024

Trade closed: target reached

Excellent profit, target closed