Prakash Industries is currently in a prolonged consolidation phase, trading within a large Triangle pattern that has been forming since September 2023. This pattern typically acts as a continuation of the prior trend, which in this case was a strong uptrend that began in April 2023.
The stock is now approaching the apex of this triangle, suggesting a significant price move could be imminent. The key boundaries to watch are:
- A formidable long-term resistance trendline dating back to January 2008. This level has triggered several "fake breakouts" in the past.
- A strong support trendline established since September 2023.
Outlook: A Breakout Awaits Confirmation
The stock is likely to remain range-bound in the immediate short term. A decisive move will only occur upon a breakout or breakdown from the existing pattern, which must be confirmed by a significant increase in trading volume.
- Trading Range: Within the current pattern, the stock could oscillate between the upper resistance near ₹187 and the lower support level around ₹160.
- Breakout Scenario 📈: A sustained breakout above the multi-year resistance on high volume would signal a continuation of the primary uptrend.
- Breakdown Scenario 📉: Conversely, a breakdown below the support trendline would invalidate the bullish continuation thesis and could lead to a significant correction.
The stock is now approaching the apex of this triangle, suggesting a significant price move could be imminent. The key boundaries to watch are:
- A formidable long-term resistance trendline dating back to January 2008. This level has triggered several "fake breakouts" in the past.
- A strong support trendline established since September 2023.
Outlook: A Breakout Awaits Confirmation
The stock is likely to remain range-bound in the immediate short term. A decisive move will only occur upon a breakout or breakdown from the existing pattern, which must be confirmed by a significant increase in trading volume.
- Trading Range: Within the current pattern, the stock could oscillate between the upper resistance near ₹187 and the lower support level around ₹160.
- Breakout Scenario 📈: A sustained breakout above the multi-year resistance on high volume would signal a continuation of the primary uptrend.
- Breakdown Scenario 📉: Conversely, a breakdown below the support trendline would invalidate the bullish continuation thesis and could lead to a significant correction.
Disclaimer: This analysis is my personal view & for educational purposes only. They shall not be construed as trade or investment advice. Before making any financial decision, it is imperative that you consult with a qualified financial professional.
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: This analysis is my personal view & for educational purposes only. They shall not be construed as trade or investment advice. Before making any financial decision, it is imperative that you consult with a qualified financial professional.
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.