Vinati Organics has been consolidating for 2 years in a unique supply-demand conversion zone.
In the first year, it traded in a rectangle pattern, making higher highs. Later, it underwent a trend reversal, forming a triangular pattern with lower highs. Throughout this period, it held one support level, as its visible from chart.
Today, it made a good move and retested its resistance. If it breaks its trend line with volume tomorrow, it could be an excellent opportunity to add some positions.
The chemical sector has been going through a correction phase, but now it seems promising to invest in.
We can take a long position in this stock with a potential target of at least 20%. To manage risk, we'll set a reasonable stop loss of 15%
Buy-1960
Target- 2350
StopLoss- 1650
If your thought also aligns with this analysis do consider boosting this.
Note- Do your own Analysis before investing.
In the first year, it traded in a rectangle pattern, making higher highs. Later, it underwent a trend reversal, forming a triangular pattern with lower highs. Throughout this period, it held one support level, as its visible from chart.
Today, it made a good move and retested its resistance. If it breaks its trend line with volume tomorrow, it could be an excellent opportunity to add some positions.
The chemical sector has been going through a correction phase, but now it seems promising to invest in.
We can take a long position in this stock with a potential target of at least 20%. To manage risk, we'll set a reasonable stop loss of 15%
Buy-1960
Target- 2350
StopLoss- 1650
If your thought also aligns with this analysis do consider boosting this.
Note- Do your own Analysis before investing.
Comment:
Vinati Organics started to rally as it broke out of a descending triangle pattern. However, there is a hidden trend line preventing the stock from moving higher. If we examine a smaller time frame, we can observe a broadening triangle-like pattern. If the stock manages to break out of that line as well, it could serve as a beautiful entry trigger, as mentioned earlier. Nevertheless, please note that this should not be considered a stock recommendation.