SHORT TERM TRADING IDEA

5 days ago

This chart shows a technical analysis of the stock SJVN Limited, with indicators and chart patterns applied. Here's a detailed breakdown:
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1. Chart Overview:
• Timeframe: Daily (1D) using Heikin Ashi candles.
• Indicators:
o ATR Trailing Stops (red and green lines tracking price trend).
o Volume Histogram.
o MACD (Moving Average Convergence Divergence).
o RSI (Relative Strength Index).
• Highlighted Patterns:
o Falling Wedge: A bullish reversal pattern.
o Bullish Divergence: Indicates potential upward price movement.
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2. Key Chart Components:
Falling Wedge Pattern:
• The falling wedge highlighted on the chart suggests a period of consolidation with lower highs and lower lows.
• The pattern is complete as the stock price breaks upward from the wedge.
• Target: The breakout indicates a bullish price objective toward ₹159.65, as marked on the chart.
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Volume:
• Volume Increase: A noticeable rise in volume accompanies the breakout, confirming stronger buying interest.
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MACD Indicator:
• Blue Line (MACD Line) crossing above Red Line (Signal Line): Indicates bullish momentum.
• Histogram Bars Turning Green: Supports a positive trend as MACD gains strength.
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RSI (Relative Strength Index):
• Current RSI (~66.94): Approaching the overbought region (70). This signals strength in the upward momentum but requires caution if it exceeds overbought levels.
• Bullish Divergence: Seen earlier (price formed lower lows while RSI formed higher lows), indicating a likely trend reversal to the upside.
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3. Price Levels:
• Support: Around ₹101.70 (marked as "Low").
• Resistance: Around ₹159.65 ("Target"), with interim resistance near ₹120.61.
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4. Conclusion:
• The chart shows a bullish breakout from the falling wedge, with strong confirmation from volume, MACD, and RSI.
• Target price is ₹159.65, but caution is advised as RSI approaches overbought conditions. Monitor for corrections if resistance levels are reached or exceeded.