Rationale:
The attached daily price chart of SRF Ltd. exhibits that stock prices have already registered a bearish breakout from a more than five-six months old rising support trendline that began from the January-2023 low at the 2082 level.
The stock prices have also attempted a pullback after which it has found resistance from the same support now turned into a resistance trendline and the recent fall from the high at 2577 (June 2023) to the low at 2320 and a minor pullback after that resembles a “Bear Flag” scenario, which is yet to be validated with a breakout below 2320 levels.
Post validation of such a pattern, the prices often tend to move towards the direction of the breakout and hence offer a fresh shorting opportunity to ride the next leg of the down move hereon.
The share price in the last session is seen crossing below its longer-term 200 days Ema line now present at the 2366 level. It has been firmly trading below all its near and far month averages on the daily scales, favouring a Sell only set-up at the current juncture.
Considering the above technical parameters, we suggest an Exit here and a strong SELL at any rise (price range 2400-2420), with the possible downside towards 2259-2222 in the short term and 2161-2063 being the targets set as per medium-term perspective. The stop loss for this particular short entry setup has to be maintained at just above 2550 on a closing basis.
The attached daily price chart of SRF Ltd. exhibits that stock prices have already registered a bearish breakout from a more than five-six months old rising support trendline that began from the January-2023 low at the 2082 level.
The stock prices have also attempted a pullback after which it has found resistance from the same support now turned into a resistance trendline and the recent fall from the high at 2577 (June 2023) to the low at 2320 and a minor pullback after that resembles a “Bear Flag” scenario, which is yet to be validated with a breakout below 2320 levels.
Post validation of such a pattern, the prices often tend to move towards the direction of the breakout and hence offer a fresh shorting opportunity to ride the next leg of the down move hereon.
The share price in the last session is seen crossing below its longer-term 200 days Ema line now present at the 2366 level. It has been firmly trading below all its near and far month averages on the daily scales, favouring a Sell only set-up at the current juncture.
Considering the above technical parameters, we suggest an Exit here and a strong SELL at any rise (price range 2400-2420), with the possible downside towards 2259-2222 in the short term and 2161-2063 being the targets set as per medium-term perspective. The stop loss for this particular short entry setup has to be maintained at just above 2550 on a closing basis.
Comment:
Trgt 1 and 2 met