Greenply Faces Resistance, Breakout, and Retest

May 31, 2023

Note: This analysis is for educational purposes only and should not be considered as financial advice. I am not a SEBI registered analyst.

Greenply, a stock that has been facing resistance since December 2022, recently broke out of a rectangle pattern on 5th May with significant volume. After the breakout, the price has moved up and is now approaching a retest of the breakout level. The previous resistance level is expected to act as support.

Here's a plan for potential trade entry:

Buy Entry: Around 154.75
Stop Loss (SL): Below the daily demand zone, approximately 151.5
Target: Below the daily supply zone, around 162
Risk-to-Reward Ratio: 1:2

It's important to note that trading carries inherent risks, and it's crucial to manage risk through proper position sizing and risk management techniques.

Summary:
Greenply has faced resistance since December 2022 but recently experienced a breakout from a rectangle pattern. The price is now testing the breakout level, which is expected to act as support. Traders may consider a buy entry around 154.75, with a stop loss below the daily demand zone at 151.5. The target is set below the daily supply zone around 162, resulting in a risk-to-reward ratio of 1:2.

Remember, always do your own research and consider multiple factors before making any trading decisions.

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Technical Terms:

Resistance: A price zone where selling pressure tends to overcome buying pressure, causing the price to stall or reverse [4].
Breakout: A price movement above a key resistance level, indicating a potential continuation or reversal of the trend [5].
Retest: When the price returns to a previously broken level to test its newfound support or resistance [5].
Support: A price zone where buying pressure tends to overcome selling pressure, preventing the price from falling further [4].
Stop Loss (SL): A predetermined price level at which a trader exits a position to limit potential losses [6].
Risk-to-Reward Ratio: A measure of potential profit relative to potential loss in a trade, calculated by dividing the target price distance by the stop loss distance

Jun 1, 2023

Trade closed: target reached

Target 🎯 Achieved