SFF - All time High Breakout - LongTrend Analysis
The stock has broken out of a long consolidation range, moving above a key resistance level. It is trading above the 50-week and 200-week moving averages, confirming a strong uptrend. Recent bullish candles suggest buying momentum.
Volume Analysis
A notable increase in volume accompanies the breakout, indicating strong institutional participation. Higher volume on breakout weeks confirms the validity of the breakout.
Structure Analysis
The stock has successfully broken past previous resistance around ₹2750-2800. It is now in a price discovery mode, with potential for further upside if it sustains above this level. Support is likely to form near the breakout level of ₹2750-2800, which can act as a retest zone.
RSI (Relative Strength Index): RSI is at 70.52, which indicates the stock is in bullish momentum but approaching overbought territory. Sustaining above 60-65 levels is generally positive for an uptrend.
MACD (Moving Average Convergence Divergence): MACD line is above the signal line, indicating a bullish crossover. Increasing histogram bars suggest strengthening momentum.
Trade Plan: Entry, Exit & Stop Loss
Entry Points: Aggressive Entry: At the current market price (₹2935) with a tight stop loss.
Conservative Entry: On a pullback to the breakout level (₹2750-2800) if it retests.
Stop Loss (SL): For Aggressive Entry: ₹2750 (below breakout zone).
For Conservative Entry: ₹2600 (below moving average support).
Target Levels (Exit)
First Target (Short-Term): ₹3200
Second Target (Mid-Term): ₹3500
Long-Term Potential: ₹4000+ if momentum sustains.
Conclusion: The stock is in a strong uptrend with a successful breakout and volume confirmation. RSI is suggesting a possible short-term pullback before further upside.
MACD supports bullish momentum.
A buy-on-dips strategy near ₹2750-2800 with SL at ₹2600 can provide a better risk-reward ratio.
This analysis is for educational and informational purposes only and should not be considered financial or investment advice. Always conduct your own research and consult with a professional financial advisor before making any trading or investment decisions. Stock market investments are subject to risks, including loss of capital. Past performance is not indicative of future results. The author is not responsible for any financial losses incurred based on this analysis.
