Indigo: Channel Breakdown Points Toward 4000Details:
Asset: InterGlobe Aviation Ltd (INDIGO)
Breakdown Levels: 5500 (initial), further breakdown below 5000
Potential Target: 4000
Stop Loss: 5250 or as per risk management
Timeframe: Short to Medium Term
Rationale:
InterGlobe Aviation (Indigo) has broken down from a major ascending channel, first losing support at 5500 and now trading below 5000, confirming continued bearish pressure. If the ongoing operational turmoil and flight disruption issues persist, the stock may extend its decline toward the 4000 zone.
Market Analysis:
Technical Setup: Clear channel breakdown with lower highs and strong bearish continuation candles.
Sentiment Impact: Negative news around Indigo’s flight operations and disruption issues is weighing heavily on investor sentiment.
Momentum: Weakness across multiple timeframes indicates sustained selling pressure.
Risk Management:
Keep stop loss near 5250 to avoid reversal traps.
Risk-Reward Ratio:
Strong bearish setup with significant downside potential if sentiment remains weak.
Watch for further breakdown signals and news developments that could accelerate or reverse the trend.
