NTPC has given a strong breakout above a resistance zone that was tested multiple times and is now approaching a retest of this zone, which is expected to act as a support zone. Based on this setup, a swing trade opportunity may be considered.
Entry: A long position can be initiated after the close of a strong bullish candle near the flip zone.
Stop Loss: A stop loss order can be placed below the flip zone to limit potential losses.
Targets: Target 1: Take profit can be set near the next resistance zone as marked on the chart. Target 2: Once target 1 is achieved, a second profit target can be set near the next resistance zone 2 as marked on the chart.
What is Flip Zone? A flip zone is a term used to describe a price zone that has flipped from acting as a resistance to acting as a support level or vice versa. It occurs when the price breaks through a key level, then retests it, causing the level to switch from acting as resistance to support or vice versa.