Monthly Inside Candle After Sharp Reversal from Lows
On the monthly timeframe, Rama Steel Tubes has formed an inside candle after a strong rebound from the ₹3.43–₹3.50 demand zone. The stock witnessed a sharp corrective decline from ₹14+ and recently printed a vertical recovery candle, followed by consolidation.
The chart indicates a projected upside move of **₹3.35 (~48.76%)**, suggesting nearly **49% potential upside** toward the swing target if breakout sustains.
Chart Structure – Breakdown Retest & Recovery Attempt
The stock earlier broke down from the ₹9.00–₹9.50 major support zone (now acting as resistance).
Price corrected sharply toward ₹3.43 low and formed a strong bullish reaction candle.
Now, a monthly inside candle signals:
• Volatility contraction
• Possible continuation setup
• Early accumulation after panic decline
However, major resistance still lies overhead near ₹8.50–₹9.00.
Key Support Zone
₹4.79 – ₹4.30 – Immediate demand zone
₹3.50 – Major structural support
₹3.43 – Recent swing low
A monthly close below ₹4.79 would weaken short-term bullish structure.
Breakdown below ₹3.50 would invalidate the recovery thesis.
Fibonacci & Critical Risk Level
₹5.19 – 50% Fibonacci Level (Red Line)
This is a key reaction level in the current structure.
If a monthly candle closes below the red 50% Fibonacci level after rejection from higher levels, the probability of further downside increases.
Sustained price action above ₹5.19 strengthens the recovery scenario and supports the 49% upside projection.
Upside Levels to Watch
Safe Entry Above: ₹6.16
Inside Candle Breakout Entry: ₹6.88
Target 1: ₹7.56
Target 2 / Reversal: ₹8.97
Swing Trade Target: ₹10.26
From the breakout zone (~₹6.88) to the swing target (~₹10.26), the projected move reflects approximately **48–49% upside potential**, as shown in the chart.
A strong monthly close above ₹8.97 would confirm medium-term reversal.
Momentum & Structure
Monthly RSI is around 37–44 zone, recovering from oversold territory but still below 50.
Momentum remains weak in the broader structure.
A sustained RSI move above 50 would confirm stronger bullish participation.
Trading Perspective
Short-term bullish bias above ₹5.19.
Stronger confirmation above ₹6.88 (inside candle breakout).
Major reversal confirmation above ₹8.97.
Bearish if monthly candle closes below ₹5.19 (50% Fibonacci red line).
Strongly bearish below ₹3.50 support.
Disclaimer: This analysis is for educational and informational purposes only. It is not financial advice or a recommendation to buy or sell any security. Please do your own research and consult with a qualified financial advisor before making any investment decisions. Stock market investments are subject to market risk.
On the monthly timeframe, Rama Steel Tubes has formed an inside candle after a strong rebound from the ₹3.43–₹3.50 demand zone. The stock witnessed a sharp corrective decline from ₹14+ and recently printed a vertical recovery candle, followed by consolidation.
The chart indicates a projected upside move of **₹3.35 (~48.76%)**, suggesting nearly **49% potential upside** toward the swing target if breakout sustains.
Chart Structure – Breakdown Retest & Recovery Attempt
The stock earlier broke down from the ₹9.00–₹9.50 major support zone (now acting as resistance).
Price corrected sharply toward ₹3.43 low and formed a strong bullish reaction candle.
Now, a monthly inside candle signals:
• Volatility contraction
• Possible continuation setup
• Early accumulation after panic decline
However, major resistance still lies overhead near ₹8.50–₹9.00.
Key Support Zone
₹4.79 – ₹4.30 – Immediate demand zone
₹3.50 – Major structural support
₹3.43 – Recent swing low
A monthly close below ₹4.79 would weaken short-term bullish structure.
Breakdown below ₹3.50 would invalidate the recovery thesis.
Fibonacci & Critical Risk Level
₹5.19 – 50% Fibonacci Level (Red Line)
This is a key reaction level in the current structure.
If a monthly candle closes below the red 50% Fibonacci level after rejection from higher levels, the probability of further downside increases.
Sustained price action above ₹5.19 strengthens the recovery scenario and supports the 49% upside projection.
Upside Levels to Watch
Safe Entry Above: ₹6.16
Inside Candle Breakout Entry: ₹6.88
Target 1: ₹7.56
Target 2 / Reversal: ₹8.97
Swing Trade Target: ₹10.26
From the breakout zone (~₹6.88) to the swing target (~₹10.26), the projected move reflects approximately **48–49% upside potential**, as shown in the chart.
A strong monthly close above ₹8.97 would confirm medium-term reversal.
Momentum & Structure
Monthly RSI is around 37–44 zone, recovering from oversold territory but still below 50.
Momentum remains weak in the broader structure.
A sustained RSI move above 50 would confirm stronger bullish participation.
Trading Perspective
Short-term bullish bias above ₹5.19.
Stronger confirmation above ₹6.88 (inside candle breakout).
Major reversal confirmation above ₹8.97.
Bearish if monthly candle closes below ₹5.19 (50% Fibonacci red line).
Strongly bearish below ₹3.50 support.
Disclaimer: This analysis is for educational and informational purposes only. It is not financial advice or a recommendation to buy or sell any security. Please do your own research and consult with a qualified financial advisor before making any investment decisions. Stock market investments are subject to market 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.