Breakout Stock/Reversal Trade- IRB Infra Dev Ltd (NSE: IRB)

Jan 2

Breakout Stock/Reversal Trade- IRB Infra Dev Ltd (NSE: IRB)
Current Price: ₹60.15 (+1.02%)
Volume: 18.14M

1. Pattern Analysis
- Cup and Handle Pattern (3 Months)
- The chart shows a Cup and Handle Pattern forming over the past 3 months, a bullish continuation setup.
- The cup represents a rounded consolidation, while the handle is a brief pullback before the price approaches the resistance at ₹60.

2. Volume Analysis
- Current Volume:
- The stock traded 18.14M shares, a significant increase in volume compared to previous sessions, indicating strong buyer interest.
- Breakout Potential:
- A further volume surge beyond the breakout level of ₹60 will confirm the Cup and Handle breakout.

3. Price Action and Observations
- The price has rallied sharply from the handle’s low near ₹54 and is now testing the ₹60 resistance zone, which aligns with the cup’s neckline.
- Sustained buying pressure above ₹60 will confirm the pattern and indicate the start of a bullish trend.

4. Key Levels to Watch
- Resistance:
- ₹60: The key breakout level and the cup’s neckline.
- ₹66: The next resistance level after a successful breakout.
- Support:
- ₹54: The base of the handle, acting as a strong support zone.

5. Trade Setup
- Entry:
- Consider entering the trade if the stock closes above ₹60 with strong volume.
- Add Alert: Set an alert at ₹60 to act promptly upon breakout confirmation.
- Stop Loss:
- Place a stop loss at ₹54, below the handle’s low, to manage downside risk.
- Target:
- Short-Term: ₹66 (next resistance level).
- Medium-Term: ₹72 (measured move from the Cup and Handle height).

6. Volume and Breakout Potential
- A volume spike above ₹60 will confirm strong buyer participation and validate the breakout.
- The sharp increase in volume during the recent rally adds confidence to the bullish setup.

7. Long-Term Outlook
- The Cup and Handle Pattern signals a bullish continuation of the prior uptrend, with significant upside potential if the breakout sustains.
- A move above ₹60 will likely attract further momentum, pushing the stock toward higher resistance levels at ₹66 and ₹72.

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