Technical Analysis
Parabolic Extension: The stock has seen a massive, nearly vertical rally from the ~400 levels to highs near 670 in a very short span. Such parabolic moves are rarely sustainable without a significant correction or consolidation phase.
Rejection at Highs: The price action shows a sharp pullback from the recent high of 661.55, indicating that profit booking is kicking in and buyers are exhausted at these elevated levels.
Risk/Reward Ratio: The current setup offers a favorable Risk/Reward ratio for a short position. The stop loss is tight relative to the potential downside move as the stock attempts to revert to the mean.
Volume Profile: High volume during the ascent suggests strong participation, but upcoming sessions should be watched for distribution volume (selling pressure) to confirm the top.
Trade Setup (Short)
Entry Zone: 661 (Looking for rejection near the highs)
Stop Loss: 697.40 (Strict SL above recent swing high to protect against a "blow-off top")
Target: 564.45 (Targeting the gap fill/retracement to previous structure support)
Potential R:R: ~ 1:2.6
⚠️ Disclaimer: This chart analysis is shared for educational and informational purposes only. It does not constitute financial or investment advice. I am not a SEBI registered research analyst. Trading in the stock market involves a high degree of risk. Please consult with a certified financial advisor and perform your own due diligence before making any trading decisions.
Parabolic Extension: The stock has seen a massive, nearly vertical rally from the ~400 levels to highs near 670 in a very short span. Such parabolic moves are rarely sustainable without a significant correction or consolidation phase.
Rejection at Highs: The price action shows a sharp pullback from the recent high of 661.55, indicating that profit booking is kicking in and buyers are exhausted at these elevated levels.
Risk/Reward Ratio: The current setup offers a favorable Risk/Reward ratio for a short position. The stop loss is tight relative to the potential downside move as the stock attempts to revert to the mean.
Volume Profile: High volume during the ascent suggests strong participation, but upcoming sessions should be watched for distribution volume (selling pressure) to confirm the top.
Trade Setup (Short)
Entry Zone: 661 (Looking for rejection near the highs)
Stop Loss: 697.40 (Strict SL above recent swing high to protect against a "blow-off top")
Target: 564.45 (Targeting the gap fill/retracement to previous structure support)
Potential R:R: ~ 1:2.6
⚠️ Disclaimer: This chart analysis is shared for educational and informational purposes only. It does not constitute financial or investment advice. I am not a SEBI registered research analyst. Trading in the stock market involves a high degree of risk. Please consult with a certified financial advisor and perform your own due diligence before making any trading decisions.
Trade active
1st entry done ..lets wait for 2nd entry
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Disclaimer
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.