Technical Analysis: Tata Elxsi Breakout

May 29, 2023

📈INTRODUCTION🚀

In this technical analysis, we'll explore the breakout in Tata Elxsi's price. Please note that this analysis is for educational purposes only, and I am not a SEBI registered analyst. Let's dive into the details!

📊KEY DETAILS🚀

🔹 Tata Elxsi's price has been facing resistance since October 2022.
🔹 The resistance supply zone was around 7445 to 7157.
🔹 On the other hand, the price found support at the monthly demand zone.
🔹 The breakout occurred with good volume, indicating strong momentum.
🔹 Before the breakout, the price halted near the resistance, which is a positive sign.

📈TRADE SETUP🚀

Based on the analysis, here's a potential trade setup:

🔹 Entry: Current Market Price (CMP) of 7508
🔹 Stop Loss: Below Friday's low, around 7198 with buffer
🔹 Target: Around 8307, just below the daily and weekly supply zone
🔹 Risk-to-Reward: 1:2.5, which is a favourable ratio

📚EDUCATIONAL INSIGHTS🚀

Before we conclude, let's define some technical terms for new traders:

🔹 Resistance: A price level where selling pressure exceeds buying pressure, causing the price to pause or reverse.
🔹 Support: A price level where buying pressure exceeds selling pressure, causing the price to pause or reverse.
🔹 Breakout: When the price moves above a significant resistance level or below a significant support level, often accompanied by increased volume.
🔹 Supply Zone: An area where sellers are likely to be present in large numbers, causing the price to struggle to rise further.
🔹 Demand Zone: An area where buyers are likely to be present in large numbers, causing the price to find support and potentially reverse.

Remember, it's essential to continue learning and understanding these concepts to become a skilled trader.

🙌CONCLUSION🚀

In conclusion, Tata Elxsi has experienced a breakout from its long-standing resistance. Based on the analysis, a potential trade setup has been identified. As always, do your own research and exercise caution while trading.

If you found this analysis helpful, please like and follow me on TradingView for more articles and trade setups. Your support, likes, follows, and comments keep me motivated to write consistently. Thank you!