IndoBorax - Fibonacci Targets in sight after Breakout - DailyIndo Borax & Chemical Ltd. has recently broken out cleanly from a descending trendline. The Fibonacci retracement levels provide clear targets for the upcoming price action, making this an interesting setup.
Technical Analysis:
Descending Trendline Breakout: The stock has decisively broken out from a descending trendline, indicating a shift in momentum from bearish to bullish.
Fibonacci Retracement Levels: The Fibonacci retracement levels drawn from the recent high to the low indicate potential resistance and support levels. Key observations include:
Support at Fib 1: The price took support at the 1.0 Fibonacci level (₹171.10) post-breakout and bounced off strongly.
Resistance at 2.618: The stock faced resistance at the 2.618 Fibonacci level (₹213.59) but has since taken support at the 1.618 level (₹187.33).
Potential Target Levels: A daily close above ₹213.59 opens up the 3.618 level (₹239.86), with the previous high acting as another target at ₹232.21.
Volume Analysis: The breakout was accompanied by a significant increase in volume. The Volume has spiked again today.
Key Levels to Watch:
Support: ₹171.10 (1.0 Fibonacci level) and ₹187.33 (1.618 Fibonacci level).
Resistance: ₹213.59 (2.618 Fibonacci level) and ₹232.21 (previous high).
Bullish Divergence on Weekly
On the Weekly chart, you will also notice that there has been a Bullish Divergence where the price made a Lower Low, while RSI made a Higher Low, shortly before the Breakout.
The RSI seems to be on an upward trajectory since, as you can see in the chart below.
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Disclaimer: This analysis is for educational purposes and should not be considered financial advice.
