AfnanTAjuddin

Ride the Wave: KPITTECH- Breakout Signals Profitable Opportunity

Long
BSE:KPITTECH   KPIT TECHNOLOGIES LTD
KPITTECH, has recently caught the attention of traders with its impressive momentum. stock experienced a breakout from the bullish trendline, marking a significant turning point. Currently, the stock is testing its breakout at trendline which was supply line before breakout, which has now transformed into a demand line.

πŸ“Š Key Analysis Points πŸ“Š
  • When examining the daily timeframe, it's clear that the stock is holding above its breakout level with minimal volume, confirming the bullish outlook at retest of breakout.
  • Zooming in to the 75-minute timeframe, we observe a bullish RSI divergence, providing additional confirmation for a buy entry at the retest of the trendline breakout.
  • Moreover, analysing the volume on the 75-minute timeframe, we notice that the majority of bullish candles exhibit higher volume, surpassing the 50-day moving average of volume. This indicates a significant buying interest and reinforces the bullish setup.

Based on this analysis, we can plan our buy trade if the price surpasses today's high at 1067. Once the breakout is confirmed, we can enter the trade at 1069. To manage risk, it is recommended to place the stop loss below the previous swing low, around 1044, it's prudent to keep a buffer and set the stop loss at 1041. it's crucial to trail stop losses to secure profits as the trade progresses.

πŸ” Educational Insights πŸ”
Before concluding this analysis, let's clarify some technical terms used:

1. Breakout: This refers to a price movement that surpasses a key resistance level or trendline, indicating a potential shift in market sentiment and often leading to further price appreciation.

2. Volume: It represents the number of shares or contracts traded during a given time period. Analysing volume can provide insights into the strength or weakness of price movements.
Curious about volume? Check out my educational article on volume analysis that made it to TradingView's prestigious Editor's Pick:

3. RSI (Relative Strength Index) Divergence: RSI is a popular momentum oscillator. Divergence occurs when the price and RSI indicator move in opposite directions, indicating a potential trend reversal.
curious about RSI Divergence? Learn more in my educational article on Divergence, chosen for TradingView's Editor's Pick:

Remember, this analysis is for educational purposes only and does not serve as financial advice. As a reminder, I am not a SEBI registered analyst.

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