Breakaway Gap and Bullish Momentum in SRF Ltd

1. Key Observations in Price Action

Price Movement:
The stock has been range-bound for a considerable period, trading between ~2200 (support zone) and ~2600 (resistance zone).

The highlighted blue box captures this range.
Several attempts to break out above 2600 (R3) failed, showing resistance.
Likewise, multiple tests of the support level around 2200 (S3) held strong.
Breakaway Gap on the chart:

A large gap-up candle appears on the right-hand side.
The price surged from the prior resistance (~2400-2500) to a new high of ~2650.
This is indicative of a breakaway gap, often signifying the start of a strong upward trend.
The breakout is further supported by strong volume (visible in the price action characteristics).
The price is now trading above the pivot (P) and nearing R1/R2, suggesting bullish momentum.

2. Pivot Levels and Key Support/Resistance

Resistance Zones:
R1 (2600): Currently being tested.
R2 (2700): The next potential level if momentum continues.
R3 (2900): A longer-term bullish target if the uptrend sustains.
Support Zones:

P (2400-2500): Recent resistance turned support; critical to sustaining the uptrend.
S1 (2300): Immediate support if a pullback occurs.
S2/S3 (2200): The bottom of the prior range and a strong support zone.

3. Breakaway Gap Analysis

What is a Breakaway Gap?
A breakaway gap occurs when the price opens significantly higher (or lower) than the previous close, accompanied by strong volume. It marks the beginning of a new trend.
The gap is often not filled immediately and acts as a strong support/resistance level.
In this case:

The gap has broken out of the 2400-2600 consolidation range, signifying the end of the prior range-bound movement.
If the gap remains unfilled in the coming sessions, it will confirm a breakaway gap and further validate bullish strength.
Support from MACD (discussed below) and pivot levels indicates the price may continue higher.

4. MACD Analysis
The MACD line (blue) is above the signal line (orange), confirming bullish momentum.
The histogram is strongly positive, indicating the strength of the upward trend.
This momentum aligns with the gap breakout and suggests the continuation of the upward move.

5. Trading Implications
Bullish Case:
A sustained move above R1 (2600) can lead to the next resistance at R2 (2700).
The breakaway gap (~2400-2500) will act as strong support, ensuring a higher low structure.
Traders can look for long entries above 2600, with a stop loss near 2500 (gap support) and targets at 2700-2900.

Bearish Case (Invalidation):
A failure to sustain above 2600 could lead to a pullback to the gap level (2400-2500).
If the price fills the gap entirely, it may re-enter the previous range of 2200-2600.

Conclusion
The breakaway gap signals a potential long-term uptrend for SRF Ltd, provided the gap remains unfilled.

MACD and pivot levels confirm bullish momentum, with upside targets at 2700 and 2900.
Key support levels to watch:
Immediate: 2500 (gap zone)
Critical: 2200 (previous range bottom)