The Setup: Major Base Breakout in Progress
ONE97 has transformed from a long-term downtrend into a powerful uptrend. The chart shows a massive multi-year base (a large rounded bottom) that is now being successfully broken out of. This transition signals a potential paradigm shift in the stock's long-term structure.
The final leg of this base is crucial:
The stock has powered past multiple resistance levels and is now consolidating right at its 52-week high and the major pivot near ₹1,285.
The recent tightness just below the "Weak High" at ₹1,385 is the final stage of supply absorption, reminiscent of the low-volatility area of a VCP.
Key Technical Confirmation
Trading Above All MAs: As you noted, the price is trading above all key moving averages, which are stacked in a bullish order. This confirms the dominance of the long-term uptrend.
Strong Relative Strength: The Relative Strength line (bottom indicator) shows exceptional strength, confirming that $ONE97 is significantly outperforming the Nifty. This is a leading stock.
Volume Signature: Volume has been consistently strong on the upward thrusts and has quieted down during this final consolidation phase, indicating that sellers have stepped aside, clearing the path for the next move.
The Trade Plan
Potential Risks & Cautionary Notes
#Disclaimer: This is for educational and observation purposes only and is not financial advice. Trade at your own risk.
ONE97 has transformed from a long-term downtrend into a powerful uptrend. The chart shows a massive multi-year base (a large rounded bottom) that is now being successfully broken out of. This transition signals a potential paradigm shift in the stock's long-term structure.
The final leg of this base is crucial:
The stock has powered past multiple resistance levels and is now consolidating right at its 52-week high and the major pivot near ₹1,285.
The recent tightness just below the "Weak High" at ₹1,385 is the final stage of supply absorption, reminiscent of the low-volatility area of a VCP.
Key Technical Confirmation
Trading Above All MAs: As you noted, the price is trading above all key moving averages, which are stacked in a bullish order. This confirms the dominance of the long-term uptrend.
Strong Relative Strength: The Relative Strength line (bottom indicator) shows exceptional strength, confirming that $ONE97 is significantly outperforming the Nifty. This is a leading stock.
Volume Signature: Volume has been consistently strong on the upward thrusts and has quieted down during this final consolidation phase, indicating that sellers have stepped aside, clearing the path for the next move.
The Trade Plan
- Entry Signal: A decisive weekly close above the 52-week high/major pivot zone (above ₹1,300) is the entry signal. The high-conviction move is a break above ₹1,385 on huge volume.
- Stop Loss (Risk Management): A clear, objective stop loss should be placed below the low of the current tight consolidation pocket, for example, around ₹1,100. This also corresponds to the recent support cluster.
- Target Expectation: Given the magnitude of the multi-year base, the breakout is likely to lead to a significant, sustained trend. The expectation is for a powerful run into new All-Time Highs.
Potential Risks & Cautionary Notes
- Failure at Major Pivot: The stock must hold the ₹1,200 level on any minor pullback. A failure to move past ₹1,385 with conviction, followed by a break below ₹1,100, would suggest a failed pattern.
- Whipsaw Risk: Trading near all-time highs and major pivots can lead to "whipsaws." Do not chase an intraday spike; wait for a confirmed daily or weekly close to validate the breakout.
- Regulatory/News Risk: As a fintech stock, the price can be highly sensitive to regulatory announcements, policy changes, or unexpected news about its business model or partnerships.
#Disclaimer: This is for educational and observation purposes only and is not financial advice. Trade at your own risk.
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.