TECHNICAL ANALYSIS | VOLUME BREAKOUT📈 FERTILISERS AND CHEMICALS TRAVANCORE LTD – TECHNICAL ANALYSIS
📆 Date: June 3, 2025
🔍 Timeframe: Daily
Price Action Overview:
FACT Ltd. witnessed a sharp bullish move of over 17.8%, closing at ₹1,046.80, significantly higher than the previous close of ₹888.35. The day’s price action formed a long bullish candle with the open and low being equal — a strong intraday buying signal. This move was supported by a volume surge of 17.02M, nearly 11x the average daily volume of 1.53M, indicating strong institutional interest.
Chart Patterns and Technical Signals:
Candlestick Patterns:
Long White Candle – Daily bullish signal
Breakout Candle + Volume Breakout – Clear breakout zone above ₹942.95
Open = Low – Indicates strong bullish sentiment
Bullish Heikin Ashi Pattern – Both on daily and monthly charts
Volume Insight:
20-Day Volume Breakout – Volume significantly above average, validating breakout strength
Yellow annotation flags a possible trend start backed by bullish indicators
Technical Indicators:
RSI (81) – Overbought zone, but reflects strong momentum
MACD – Daily & Weekly show bullish crossovers
CCI – Above 100 across timeframes – indicates a high momentum phase
Stochastic – Deep in overbought zone, confirming strength
Support & Resistance Levels:
Resistance 1 ₹1,111.63
Resistance 2 ₹1,176.47
Resistance 3 ₹1,286.93
Support 1 ₹936.33
Support 2 ₹873.45
Support 3 ₹761.03
Educational Insights:
This breakout structure exhibits:
Volume Confirmation: Institutional activity hinted by breakout volume spike
Multiple Technical Triggers: Bollinger Band breakout, RSI breakout, MACD crossover, BB Squeeze Off – all aligning bullish
Momentum Confirmation: Indicators across timeframes reflect bullishness
The current price structure suggests entry into a markup phase, where price tends to trend strongly. However, given the overbought RSI and stochastic levels, risk management becomes crucial.
This case is a textbook breakout from a consolidation zone.
Note how breakouts with volume tend to sustain better.
Use prior resistance (₹942.95) as a reference support zone in case of pullbacks.
How to Trade: FACT (For Learning Purpose)
📈 SUPREME INDUSTRIES LTD – TECHNICAL ANALYSIS
📆 Date: May 27, 2025
🔍 Timeframe: Daily
Price Action:
Supreme Industries surged over 4% today and delivered a clean breakout after forming a consolidation triangle. The strong bullish candle closed near the day’s high with significant volume, confirming momentum on the upside.
Chart Pattern / Candlestick Pattern:
Symmetrical Triangle Breakout
Pullback Entry Zone Tested
Breakout Candle – wide range, strong body
Volume Surge – institutional interest visible
Technical Indicators:
RSI (Daily): 77 – strong bullish zone
MACD: Bullish crossover active
Stochastic: 98 – overbought but confirming strength
CCI: Above 200 – high momentum phase
Volume: 791.75K – supportive of breakout
Support & Resistance Levels:
Immediate Resistance: 4277.93
Next Resistance: 4355.47
Major Resistance: 4490.43
Immediate Support: 4065.43
Secondary Support: 3930.47
Major Support: 3852.93
Possible Fresh Demand Zone: 3837.60 – 3750.90
Chart Overview:
This visual clearly shows:
🔸 The symmetrical triangle pattern
🔸 Breakout + retest zone
🔸 Marked fresh demand zone for potential pullback opportunity
Educational Breakdown:
This setup combines:
Price Action: Triangle + Breakout
Volume Confirmation: Institutional participation
Momentum Indicators: Strong alignment
Demand Zone Mapping: Pre-breakout base
This is a classic trend continuation setup with clearly defined zones of interest. Risk control is key as price enters overbought territory.
Over the past few months, Supreme Industries displayed classic signs of an accumulation zone — a period marked by sideways movement, controlled volatility, and relatively stable volumes. This range-bound behavior typically indicates that long-term investors are quietly building positions while retail participation remains low. Recently, a strong bullish move supported by a significant rise in volume suggests the stock may have exited accumulation and entered the mark-up phase. This phase is often characterized by increased demand, higher price swings, and a clear shift in sentiment from neutral to bullish. The sharp breakout from the range, along with volume confirmation, signals the possible beginning of a new directional trend — where price tends to move swiftly as broader market participants join in.
How to Trade Supreme Industries (for learning purpose):
Entry Example: 1066
Stop Loss: 888.50 (Risk: 177.50)
Target Example 1: 1243.50(Reward: 177.50)
Target Example 1: 1421(Reward: 355)
Sample Quantity: 50 shares
RR Ratio: ~1:1/1:2 etc.
Aggressive Traders: May consider riding the trend with trailing stop
Conservative Traders: Can wait for a pullback into the fresh demand zone (898 – 873.45)
⚠️ Risk Management Tip: Always trade with a clearly defined stop loss. Avoid entering positions impulsively. It is advisable to start with a smaller quantity and increase your exposure only if the price action confirms the continuation of the trend. Capital protection should always be the priority.
📢 Disclaimer
This content is created purely for educational and informational purposes. It is not intended as investment advice, stock recommendations, or trading tips. Trading and investing in the stock market involves risk. Please consult with a SEBI-registered financial advisor before making any investment decisions. The author/creator is not registered with SEBI and shall not be held responsible for any losses incurred based on this information. Always do your own research and use proper risk management.
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