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Pullback BUY on DR REDDYS LABS

Long
NSE:DRREDDY   DR REDDYS LABS
Trend on Higher Timeframe (Weekly chart) - Green / Uptrend
Trend on Current Timeframe ( Daily chart ) - Green / Uptrend

It is common for shorter duration multiple moving averages to compress and expand repeatedly during an Uptrend. The compression of such shorter duration multiple moving averages can be used to identify a pullback.

The blue cloud in the chart is a combination of shorter duration moving averages. The dots at the bottom of the chart identifies such compression.

Swing traders can enter at around Rs .4482. Long term traders can use this pullback and continue the trade since the trend is strongly upwards.

The stock has taken support at 50EMA. That can be used as Stop Loss i.e. at Rs . 4310
Comment: We are already up by over 16% in this trade. Which means we are over 4x of our risk. Swing traders can exit partially here, while long term traders can keep trailing.

A similar pullback trade opportunity & breakout happened today in Natco Pharma also today (NATCOPHARM)
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SEBI Registered Research Analyst.

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