Bullish Breakout Alert! Key Resistance Zone Tested !Analysis Timeframe: Daily Chart | Instrument: The Ramco Cements Ltd (NSE: RAMCOCEM, BSE: RAMCOCEM)
Current Price: Near 1011-1015 | Key Levels: Resistance Zone (1011-1015), Support: 958 (Trailing SL)
🔍 Technical Setup Overview
Ramco Cements (NSE: RAMCOCEM) is flashing a high-conviction bullish reversal pattern on the daily chart, backed by surge in volume and multi-indicator confirmations:
Bullish Engulfing Candle 🕯️🔥
Today’s price action formed a Bullish Engulfing pattern, with the current candle fully swallowing the prior candle. This signals a strong shift in control from sellers to buyers, especially on extremely high volume (institutional accumulation).
EMA Alignment & Dynamic Support
Price rebounded sharply from the 20 EMA and sustains above the 50 EMA and 200 EMA, confirming the broader uptrend’s strength.
Resistance Breakout Potential
The 1011-1015 zone is a critical supply area. A daily close above 1015 would confirm the breakout, opening the path for a rally.
Momentum Confirmation
MACD: Bullish crossover
RSI: Crossed above, signaling bullish momentum acceleration.
🎯 Trade Strategy
Entry Trigger:
Go Long on Daily Close Above 1015
Targets:
First Target: 1060.
Trailing SL Strategy: After 1060, trail SL to the prior daily candle’s low. Exit only on a daily close below the trailing level.
Risk Management:
Initial Stop Loss: 958 (Today’s low, aligns with Bullish Engulfing pattern validity).
Risk-Reward Ratio: 1:2+ (Optimal for swing trades).
📉 Why This Works
Pattern Power: Bullish Engulfing + volume surge = high-probability reversal signal.
Trend Confirmation: Price above all key EMAs + breakout alignment.
Trailing SL: Locks profits while allowing for extended upside in a trending market.
🛡️ Key Risks
False Breakout: Failure to close above 1015 could trap bulls.
Market Sentiment Shift: Broader volatility may disrupt momentum.
Disclaimer: Trading involves risk. This is not financial advice. Verify setups independently.
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