STEELCAS - Strong Base Breakout on Weekly Chart
The stock was in a long, 52-week consolidation phase before breaking out.
9-Week Small Base Formation:
Before the breakout, the stock formed a 9-week "small base" near the top of the consolidation range. This pattern shows a tightening of price action, where volatility decreases and the stock consolidates in a smaller range.
This formation often acts as a springboard, where price gathers momentum to break out above resistance. The small base also suggests reduced selling pressure and growing buying interest.
2x Average Volume on Daily Chart:
The daily chart shows an increased volume on last day, with trading volume reaching twice the average on the day of the breakout.
High volume on breakout days confirms that institutional buyers are likely entering, adding strength to the breakout move.
Rising EMAs Indicating Strength:
The rising Exponential Moving Averages (EMAs) confirm the underlying bullish trend. The shorter-term 20-week EMA, in particular, is sloping upwards, suggesting ongoing strength and upward momentum.
Trade Setup with Key Levels
Entry Point:
The ideal entry would be near the breakout level of 830-850, confirming the breakout above resistance with strong volume.
Targets:
Target 1: 910 – A reasonable target near the next resistance.
Target 2: 1,020 – Provides further gains if the bullish trend continues.
Target 3: 1,150 – For a long-term position if momentum sustains.
Stop-Loss:
Set a stop-loss around 735, below the consolidation range, to manage risk in case of a false breakout.
9-Week Small Base Formation:
Before the breakout, the stock formed a 9-week "small base" near the top of the consolidation range. This pattern shows a tightening of price action, where volatility decreases and the stock consolidates in a smaller range.
This formation often acts as a springboard, where price gathers momentum to break out above resistance. The small base also suggests reduced selling pressure and growing buying interest.
2x Average Volume on Daily Chart:
The daily chart shows an increased volume on last day, with trading volume reaching twice the average on the day of the breakout.
High volume on breakout days confirms that institutional buyers are likely entering, adding strength to the breakout move.
Rising EMAs Indicating Strength:
The rising Exponential Moving Averages (EMAs) confirm the underlying bullish trend. The shorter-term 20-week EMA, in particular, is sloping upwards, suggesting ongoing strength and upward momentum.
Trade Setup with Key Levels
Entry Point:
The ideal entry would be near the breakout level of 830-850, confirming the breakout above resistance with strong volume.
Targets:
Target 1: 910 – A reasonable target near the next resistance.
Target 2: 1,020 – Provides further gains if the bullish trend continues.
Target 3: 1,150 – For a long-term position if momentum sustains.
Stop-Loss:
Set a stop-loss around 735, below the consolidation range, to manage risk in case of a false breakout.
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