The Setup (Bias): I am taking a LONG bias on NLC India Limited (NLCINDIA) on the weekly (1W) timeframe.
The "Why" (Technical Reasons): 1. Ascending Triangle Breakout: The price has forcefully broken out of a massive, multi-month ascending triangle pattern. After months of buyers continually stepping in at higher prices (indicated by the rising lower trendline), they have finally overwhelmed the sellers and cleared the heavy horizontal resistance at the 292.70 level.
2. Bullish Momentum: The breakout is confirmed by a strong, full-bodied green weekly candle pushing into fresh highs. Breaking out of a structural continuation pattern of this size on a weekly chart indicates a high probability of a sustained upward trend.
Trade Plan (Entry & Exits): * Entry: Momentum traders can look for entries near the current market price of 313.85 to capture the immediate surge. A safer, lower-risk approach would be placing limit orders to catch a potential weekly pullback to retest the 292.70 breakout line, letting that old resistance ceiling prove itself as a new support floor.
Take Profit (Target): Based on the measured move of the triangle and the massive prior uptrend (flag pole), momentum can carry this significantly higher. The next major psychological targets are the 350.00 milestone, followed by 400.00.
Stop Loss: Placed safely below the breakout line and the rising trendline support, around the 260.00 level. A weekly close back below the 292.70 level and breaking the ascending trendline would invalidate the structural setup.
Duration: Because this analysis is built on a 1-Week chart capturing a major pattern breakout, this is a medium-to-longer-term swing trade designed to play out over the coming weeks to months.
The "Why" (Technical Reasons): 1. Ascending Triangle Breakout: The price has forcefully broken out of a massive, multi-month ascending triangle pattern. After months of buyers continually stepping in at higher prices (indicated by the rising lower trendline), they have finally overwhelmed the sellers and cleared the heavy horizontal resistance at the 292.70 level.
2. Bullish Momentum: The breakout is confirmed by a strong, full-bodied green weekly candle pushing into fresh highs. Breaking out of a structural continuation pattern of this size on a weekly chart indicates a high probability of a sustained upward trend.
Trade Plan (Entry & Exits): * Entry: Momentum traders can look for entries near the current market price of 313.85 to capture the immediate surge. A safer, lower-risk approach would be placing limit orders to catch a potential weekly pullback to retest the 292.70 breakout line, letting that old resistance ceiling prove itself as a new support floor.
Take Profit (Target): Based on the measured move of the triangle and the massive prior uptrend (flag pole), momentum can carry this significantly higher. The next major psychological targets are the 350.00 milestone, followed by 400.00.
Stop Loss: Placed safely below the breakout line and the rising trendline support, around the 260.00 level. A weekly close back below the 292.70 level and breaking the ascending trendline would invalidate the structural setup.
Duration: Because this analysis is built on a 1-Week chart capturing a major pattern breakout, this is a medium-to-longer-term swing trade designed to play out over the coming weeks to months.
Trade active
Price is in strong momentum. Today it closed at Rs. 370. Note
After hitting a high of 387, price is currently consolidating.
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.
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.