The weekly chart of REC Limited demonstrates a clear breakdown from a prolonged consolidation phase.
The price action was previously contained within a rectangular box, with a solid support zone established near the 320 level and resistance capping the upside around 380.
Recently, the price decisively breached the 320 support floor with a large bearish candle, accompanied by a noticeable spike in trading volume.
This confirms the breakdown and signals a strong shift in momentum toward the downside.
Trade Setup:
Bias: Short (Bearish)
Entry Point: Consider initiating short positions near the current market price of 287.75, or look for a pullback/retest toward the broken support zone in the 310–315 range for a better risk-to-reward ratio.
Target: The primary technical target is 260.
This is calculated by measuring the height of the consolidation box (approximately 60 points) and projecting it downward from the 320 breakdown level.
Stop Loss: A strict stop loss should be placed above the breakdown zone, ideally on a weekly closing basis above 330, to invalidate the bearish thesis if the price re-enters the box.
Expected Duration: Since this setup is based on a weekly timeframe, the trade could take several weeks to a few months to fully play out.
The price action was previously contained within a rectangular box, with a solid support zone established near the 320 level and resistance capping the upside around 380.
Recently, the price decisively breached the 320 support floor with a large bearish candle, accompanied by a noticeable spike in trading volume.
This confirms the breakdown and signals a strong shift in momentum toward the downside.
Trade Setup:
Bias: Short (Bearish)
Entry Point: Consider initiating short positions near the current market price of 287.75, or look for a pullback/retest toward the broken support zone in the 310–315 range for a better risk-to-reward ratio.
Target: The primary technical target is 260.
This is calculated by measuring the height of the consolidation box (approximately 60 points) and projecting it downward from the 320 breakdown level.
Stop Loss: A strict stop loss should be placed above the breakdown zone, ideally on a weekly closing basis above 330, to invalidate the bearish thesis if the price re-enters the box.
Expected Duration: Since this setup is based on a weekly timeframe, the trade could take several weeks to a few months to fully play out.
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.