Potential Bullish Setup for Steel Authority of India (SAIL)
Chart Structure:
The stock is moving within a well-defined ascending channel, connecting Common Bottoms and Common Tops over the long term. Currently, the price is bouncing off the lower boundary of this channel, signifying a strong support level.
Key Observations:
Trade Plan:
Entry: Around current levels near ₹115-₹118, as the price holds the channel support.
Target 1: ₹140 (near-term resistance).
Target 2: ₹190-₹200 (upper channel boundary).
Stop Loss: Below ₹108 (break of channel support and S&R Flip level).
Risk-Reward Ratio: The setup offers an attractive risk-to-reward ratio of approximately 1:3, making it favorable for swing trading.
Caution: A sustained breakdown below ₹108 may invalidate this bullish scenario.
#SteelAuthorityOfIndia #SAIL #SwingTrading #TechnicalAnalysis #PSU
The stock is moving within a well-defined ascending channel, connecting Common Bottoms and Common Tops over the long term. Currently, the price is bouncing off the lower boundary of this channel, signifying a strong support level.
Key Observations:
- Doji Candle Formation at support indicates a potential reversal signal. This aligns with the S&R Flip zone, where prior resistance has now become strong support.
- The overall trend remains bullish, as highlighted by the steady uptrends after each Time Correction phase. This suggests continuation towards the upper end of the channel.
- The immediate resistance lies near ₹140, with the Supply Zone observed around ₹220-₹240.
Trade Plan:
Entry: Around current levels near ₹115-₹118, as the price holds the channel support.
Target 1: ₹140 (near-term resistance).
Target 2: ₹190-₹200 (upper channel boundary).
Stop Loss: Below ₹108 (break of channel support and S&R Flip level).
Risk-Reward Ratio: The setup offers an attractive risk-to-reward ratio of approximately 1:3, making it favorable for swing trading.
Caution: A sustained breakdown below ₹108 may invalidate this bullish scenario.
#SteelAuthorityOfIndia #SAIL #SwingTrading #TechnicalAnalysis #PSU
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