Redington Ltd – CNH & Inverse H&S Trade with Caution!
🚀 Pattern Highlights
Cup and Handle & Inverse Head and Shoulders:
Redington is showing a potential Cup and Handle (CNH) formation alongside an Inverse Head and Shoulders, signaling a breakout at ₹238–₹240.
📊 Technical Levels
🕵️♂️ Observations
1️⃣ The stock is trading within an ascending channel, forming higher lows.
2️⃣ It's below its 52-week high but not correcting much during this bearish phase.
3️⃣ The channel top may act as a key resistance.
4️⃣ Still in Higher High (HH) and Higher Low (HL) format while many other stocks have transitioned to Lower High (LH) and Lower Low (LL) structures.
5️⃣ Volume confirmation will be crucial for a breakout.
⚠️ Risks to Consider
Market Sentiment: Current market conditions are bearish, with indices correcting and most sectors showing weakness.
Bearish Transition?: No confirmation if this is a bull market correction or the start of a bear market.
Earnings Season: Quarterly results are around the corner, which could bring surprises.
📌 Why Risk Management Is Key
Example: Newgen Software recently broke out at ₹1,548 (ATH), moved ~15%, but then plunged 41% in just 9 trading sessions, trapping bulls.
Solution: Trade light with 7–10% of your usual position size (e.g., buy 7 shares if you usually buy 100). This limits risk while keeping you involved.
🏁 Conclusion
Trade cautiously: Position size, risk management, and patience are your best tools here.
If the stock doesn’t fall further, it could be an ideal candidate when the market reverses and bottoms out.
For Beginners: Avoid this trade for now. Add it to your watchlist and observe.
✨ Final Thoughts
Redington is trading tightly above its key DMAs with narrow-range candles. This indicates strength despite market weakness. Watch closely for a breakout confirmation.
🔍 Disclaimer
This is not financial advice. Do your own research (DYOR) and consult a financial advisor before making investment decisions. Trading involves risks, and capital is at stake. This idea is shared for educational purposes only.
Cup and Handle & Inverse Head and Shoulders:
Redington is showing a potential Cup and Handle (CNH) formation alongside an Inverse Head and Shoulders, signaling a breakout at ₹238–₹240.
📊 Technical Levels
- Entry: ₹238–₹240 (Breakout Level)
- Stop Loss: ₹181 (24% below, on a daily closing basis)
- Target: ₹340 (~42% upside, positional/medium-term)
- Risk-Reward Ratio: ~1:1.75
🕵️♂️ Observations
1️⃣ The stock is trading within an ascending channel, forming higher lows.
2️⃣ It's below its 52-week high but not correcting much during this bearish phase.
3️⃣ The channel top may act as a key resistance.
4️⃣ Still in Higher High (HH) and Higher Low (HL) format while many other stocks have transitioned to Lower High (LH) and Lower Low (LL) structures.
5️⃣ Volume confirmation will be crucial for a breakout.
⚠️ Risks to Consider
Market Sentiment: Current market conditions are bearish, with indices correcting and most sectors showing weakness.
Bearish Transition?: No confirmation if this is a bull market correction or the start of a bear market.
Earnings Season: Quarterly results are around the corner, which could bring surprises.
📌 Why Risk Management Is Key
Example: Newgen Software recently broke out at ₹1,548 (ATH), moved ~15%, but then plunged 41% in just 9 trading sessions, trapping bulls.
Solution: Trade light with 7–10% of your usual position size (e.g., buy 7 shares if you usually buy 100). This limits risk while keeping you involved.
🏁 Conclusion
Trade cautiously: Position size, risk management, and patience are your best tools here.
If the stock doesn’t fall further, it could be an ideal candidate when the market reverses and bottoms out.
For Beginners: Avoid this trade for now. Add it to your watchlist and observe.
✨ Final Thoughts
Redington is trading tightly above its key DMAs with narrow-range candles. This indicates strength despite market weakness. Watch closely for a breakout confirmation.
🔍 Disclaimer
This is not financial advice. Do your own research (DYOR) and consult a financial advisor before making investment decisions. Trading involves risks, and capital is at stake. This idea is shared for educational purposes only.
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Disclaimer
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