Price action to date - HAL today made a fresh lifetime high but failed to break out of the trading zone it has been trading in for 13 trading sessions. The stock has recently shown good momentum riding which it went past the zone it has been trading in for the last 52 weeks post which it has remained range-bound. There is a clear reduction in the volume while it has remained range-bound while today it the volume expanded as the stock tried to go past the zone which gives an impression that the phase is an accumulation one and not a distribution.
Near Future view - Once the stock breaks above the zone (with a clear expansion in volumes), one may enter the stock with an SL of 1315 with the below swing targets (CMP - 1431.95)
T1 - 1527 (23.6% of Fibonacci)
T2 - 1571 (38.2% of Fibonacci)
SL - 1340 (Lower limit of the consolidation zone)
Near Future view - Once the stock breaks above the zone (with a clear expansion in volumes), one may enter the stock with an SL of 1315 with the below swing targets (CMP - 1431.95)
T1 - 1527 (23.6% of Fibonacci)
T2 - 1571 (38.2% of Fibonacci)
SL - 1340 (Lower limit of the consolidation zone)
Comment:
Today (21/09/2021), HAL didn't violate the mentioned SL level of 1340 therefore if someone has already taken position then it should be kept with a strict SL of 1340 on a daily closing basis. A fresh long position should only be made above 1460 on a daily closing basis.