AfnanTAjuddin

PRINCEPIPE's Breakout and Divergence: A Winning Trade Setup!

Long
NSE:PRINCEPIPE   PRINCE PIPES FITTINGS LTD
PRINCEPIPE recently experienced a breakout with significant volume last month. Now, if we examine the weekly chart, we can observe that the price is currently testing the breakout level, which previously acted as resistance. At present, the price is trading near a crucial support area.

πŸ“‰ Bearish Candles and Volume Divergence:
On the daily chart, we can spot six bearish candles consecutively. However, a closer look at the volume reveals exhaustion. There seems to be a clear divergence between the declining volume and the price action. Furthermore, on the weekly chart, despite the intense selling pressure reflected by the red candle, the volume is surprisingly low.

πŸ“ˆ Trade Setup:
Considering the current scenario, a potential buying opportunity can be identified at the current level of 640. Placing a stop-loss at 627 and setting a target of 674 offers a favourable risk-to-reward ratio of approximately 1:2.5.

Remember to conduct your thorough analysis and consider other relevant factors before making any trading decisions.

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Disclaimer: The following analysis is for educational purposes only and should not be considered as financial advice. I am not a SEBI registered analyst.