The stock has been following a strong upward channel, as shown by the blue trendlines.
Over the past months, the price has consistently respected these trendlines, indicating strong investor confidence and sustained buying pressure.
Current Channel Movement:
The price is trading within a secondary ascending channel, showing shorter-term consolidation within the broader trend.
This setup suggests that while the uptrend remains intact, the stock is in a phase of measured growth.
Key Levels
Support Levels:
₹6,688.75: A critical near-term support level, highlighted in red. This level aligns with the lower boundary of the short-term channel.
₹6,353.25: The major support level that the price must hold to sustain the broader uptrend.
Resistance Levels:
₹7,081.15: A key resistance zone, which the stock has been testing recently.
₹7,234.70 and ₹7,445.10: Further resistances that could come into play if the stock breaks out above ₹7,081.15.
₹7,644.10: The ultimate resistance in the current setup, beyond which the stock could experience strong bullish momentum.
Volume Analysis:
A noticeable volume spike occurred during the last leg of the uptrend, signaling strong accumulation by investors.
Current volume trends are more subdued, suggesting a period of consolidation, which often precedes a breakout.
Key Observations
Bullish Flag Formation: The stock is forming a bullish flag, a continuation pattern that often leads to further upside. A breakout above ₹7,081.15 could confirm this pattern.
Potential Scenarios
Bullish Case:
If the stock breaks ₹7,081.15 with strong volume, it could rally toward ₹7,234.70 and eventually ₹7,644.10.
Bearish Case:
If the stock breaches ₹6,688.75, the next support at ₹6,353.25 will be crucial to watch.
TRENT stock exhibits strong upward momentum, making it an attractive option for traders. A breakout above ₹7,081.15 could signal further gains, while buying near ₹6,688.75 support levels offers a favorable risk-reward setup. As always, implementing strict stop-loss levels and sound risk management is crucial to handle potential market volatility effectively.
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