krishna defence - next bull run is coming soon
Trade Setup - KRISHNADEF (NSE)
Scenario: Bullish breakout from a rounding bottom pattern with a close above the 50% Fibonacci retracement level.
Entry:
Trigger: A candlestick close above ₹723 (the 50% Fibonacci level). This confirms a break above the rounding bottom pattern and suggests strong upward momentum.
Confirmation (Optional): You could wait for a second confirming candle close above ₹723 to further validate the breakout.
Stop Loss:
₹630.00 (as marked on the chart). This limits your risk by defining the point at which you'll exit the trade if the price moves against you.
Targets:
Target 1: ₹811 (38.2% Fibonacci retracement) - A common first target in this scenario.
Target 2: ₹919 (23.6% Fibonacci retracement) - A more ambitious target if momentum continues.
Target 3: ₹1,095.60 (as marked on the chart) - The most ambitious target, potentially based on previous resistance or a significant Fibonacci extension level.
Rationale:
Rounding Bottom: This pattern suggests a gradual shift in sentiment from bearish to bullish, with the potential for a significant upward move.
Fibonacci Confluence: The 50% retracement level is a key level in Fibonacci analysis. A break above it adds to the bullish case.
Stop Loss Placement: The stop loss below the recent swing low helps protect your capital if the breakout fails.
Trade Management:
Trailing Stop: Consider using a trailing stop loss to lock in profits as the price moves in your favor. You could trail your stop loss below the most recent swing low or use a moving average.
Partial Profits: You could take partial profits at each target level to reduce risk and secure some gains.
Important Considerations:
Timeframe: The timeframe of this chart is crucial. If it's a weekly chart, this setup implies a longer-term trade. A daily chart suggests a shorter-term trade.
Volume: Observe volume during the breakout. Increasing volume adds conviction to the move.
News and Events: Be aware of any news or events that could impact the stock price.
Risk Management: Only risk capital you can afford to lose. This trade setup, like any other, has no guaranteed outcome.
Scenario: Bullish breakout from a rounding bottom pattern with a close above the 50% Fibonacci retracement level.
Entry:
Trigger: A candlestick close above ₹723 (the 50% Fibonacci level). This confirms a break above the rounding bottom pattern and suggests strong upward momentum.
Confirmation (Optional): You could wait for a second confirming candle close above ₹723 to further validate the breakout.
Stop Loss:
₹630.00 (as marked on the chart). This limits your risk by defining the point at which you'll exit the trade if the price moves against you.
Targets:
Target 1: ₹811 (38.2% Fibonacci retracement) - A common first target in this scenario.
Target 2: ₹919 (23.6% Fibonacci retracement) - A more ambitious target if momentum continues.
Target 3: ₹1,095.60 (as marked on the chart) - The most ambitious target, potentially based on previous resistance or a significant Fibonacci extension level.
Rationale:
Rounding Bottom: This pattern suggests a gradual shift in sentiment from bearish to bullish, with the potential for a significant upward move.
Fibonacci Confluence: The 50% retracement level is a key level in Fibonacci analysis. A break above it adds to the bullish case.
Stop Loss Placement: The stop loss below the recent swing low helps protect your capital if the breakout fails.
Trade Management:
Trailing Stop: Consider using a trailing stop loss to lock in profits as the price moves in your favor. You could trail your stop loss below the most recent swing low or use a moving average.
Partial Profits: You could take partial profits at each target level to reduce risk and secure some gains.
Important Considerations:
Timeframe: The timeframe of this chart is crucial. If it's a weekly chart, this setup implies a longer-term trade. A daily chart suggests a shorter-term trade.
Volume: Observe volume during the breakout. Increasing volume adds conviction to the move.
News and Events: Be aware of any news or events that could impact the stock price.
Risk Management: Only risk capital you can afford to lose. This trade setup, like any other, has no guaranteed outcome.
Disclaimer
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