Hindalco looking bewildered. Plan to trade either side.Hindalco is forming a double top formation on the weekly charts, showing some weakness in the stock as the market is more time in recoverying the fall of one week.
The stock has been in a good up trend and has reached 850 levels forming a base around 560-600 level zone i.e. Approx 30-35% return in 9 months.
Since June 2022, Hindalco has not taken out the previous low and recent gave the break out of the previous ATH and retested it.
Major trend for the stock is still bullish and there is a probability of continuing the same if the recent is taken out with good volumes, support the bullishness of the stock.
Bullish Scenario (A good HLHH formation is there in the stock).
Enter above 870 levels
Stop loss :- 825 (5%)
Target :- 1012 (16%)
R:R = 1:3
Buying a stock above 870 gives a bullish signal and can captured with proper SL and target.
Bearish Scenario (A double top pattern, bearish RSI divergence and Weekly 20 EMA break down).
Entry below 830 levels
Stop Loss :- 866 (4%)
Target :- 770 (7%)
R:R = 1:1.75
The targets can be trailed upto the levels of 740 levels while trailing the SL logically.
Wait for the stock to form some setup for the either side momentum and trade in the direction of the market.
