JSW steel| 2 year resistance zone breakout with inverted H&S.

JSW steel has been respecting a resistance zone around 780 levels from May 2021 and has finally given a break out.

Is stock going to carry the bullish movement or break out is fake out??

The stock has given a close above the levels on the weekly time frame and at the same time the gravestone doji is creating a confusion of stock gaining some positive momentum.

On the weekly charts, a clear inverted Head and shoulder pattern is there. It has been consolidating for last 3 weeks at the higher levels. A 'W' pattern is also there.

But the RSI indicator is losing strength as there is a bearish divergence in the stock.

The daily charts has respected the 20 ema and is consolidating in a box above the resistance zone. The stock is taking a halt at the higher levels.

The chances of a retest is high as the indicator predicts. It can be bought at the lower levels for a 20-25% ROI in 3-4 months.

Buying levels :- 773-780, 810
Target :- 970-1000
Time frame :- 3-4 months.

The stock has respected the zone many times and given a break out. It will retest the zone as there are multiple confluence i.e. fibonacci levels, fixed range volume profile, moving average.

Wait for the stock to retest and form a price action near the levels.


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.