Swing/Positional Trade Idea: Jamna Auto (NSE: JAMNAAUTO)Pattern Alert: Rounding Bottom Nears Breakout!
📈 Technical Setup
Daily Chart Pattern: Price is completing a multi-month rounding bottom (bullish reversal pattern), signaling accumulation.
Current Price: Consolidating near ₹88.80, approaching the crucial breakout zone of ₹94.25–95.60.
Confirmation Trigger: A decisive close above ₹95.60 on rising volume validates the breakout.
🎯 Trade Strategy
Entry: Buy on breakout confirmation above ₹95.60 (close basis).
Stop Loss: ₹86.36 (below the recent swing low & pattern support).
Targets:
T1: ₹106 (+11% from breakout)
T2: ₹113 (+18%)
T3: ₹123 (+29%)
T4: ₹133 (+39%)
Final Target: ₹149 (all-time high, +56%)
Risk-Reward: 1:5+ (based on SL to T1).
⚠️ Key Notes
Patience Required: This is a positional trade with a 3–6 month horizon. Hold through minor pullbacks.
Volume Confirmation: Breakout must be backed by +50% above average volume for conviction.
💡 Why This Works
Rounding bottoms indicate long-term trend reversal with high follow-through probability.
Targets align with Fibonacci extensions & prior swing highs.
Low-risk entry: Tight SL (8% risk) for asymmetric upside.
Trade smart. Track volume. Patience pays!
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📜 GENERAL DISCLAIMER
This analysis is for educational purposes only and does not constitute financial advice, a recommendation, or an offer to buy/sell securities. Trading involves substantial risk of loss and is not suitable for every investor.
❗ KEY RISK ACKNOWLEDGMENTS
Not Personalized Advice: This idea is based on technical analysis and may not align with your risk profile, capital, or goals.
Past Performance ≠ Future Results: Patterns may fail due to market volatility, news, or sector weakness.
Capital Risk: You may lose all or more than your initial investment. Use only risk capital.
Stop Loss Execution: SL orders may trigger below ₹86.36 during gaps or low liquidity.
Holding Period: Positional trades require monitoring. Unforeseen events (earnings, regulations, global shocks) could invalidate the setup.
Bias Alert: This is a bullish bias idea. Always assess bearish scenarios.
🔍 Verify Independently
Cross-verify with fundamentals (debt, earnings, management).
Check broader market trends (Nifty Auto, Nifty 500).
Consult a SEBI-registered advisor before acting.
⚠️ YOUR RESPONSIBILITY
You alone are accountable for trading decisions. The author/platform assumes no liability for losses.
