Salasar - 7 Year Channel Breakout, Correction and Momentum
In January 2024, Salasar Techno Engineering Ltd. broke out of a 7-year-long channel, signalling a significant shift in its long-term trend. Following this breakout, the stock surged by approximately 150% before beginning a correction from its all-time high.
From March 2024 onwards, the stock entered a consolidation phase within a downward channel. Recently, it broke out of this channel with strong volume, following a "shake out" that may have cleared weaker hands.
During the consolidation, the volume remained low, which is typical as the stock builds a base before a potential breakout. Notably, the stock has consistently found support at the 200-day EMA since November 2022, a critical level that often indicates the underlying strength of the trend.
Furthermore, the RSI has also broken out, confirming the momentum in the stock.
Strategy:
Stop Loss: Below ₹17
Target: To be determined based on future price action.
Disclaimer: The information and publications are not meant to be, and do not constitute, financial, investment, trading or any other types of advice or recommendations.
From March 2024 onwards, the stock entered a consolidation phase within a downward channel. Recently, it broke out of this channel with strong volume, following a "shake out" that may have cleared weaker hands.
During the consolidation, the volume remained low, which is typical as the stock builds a base before a potential breakout. Notably, the stock has consistently found support at the 200-day EMA since November 2022, a critical level that often indicates the underlying strength of the trend.
Furthermore, the RSI has also broken out, confirming the momentum in the stock.
Strategy:
Stop Loss: Below ₹17
Target: To be determined based on future price action.
Disclaimer: The information and publications are not meant to be, and do not constitute, financial, investment, trading or any other types of advice or recommendations.
Note
Weekly Chart-
Note
Price recovered from lower level and closed with bullish candle aptly supported by strong volume.
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.