Breakout Soon Stock- Sastasundar Ventures Limited [SASTASUNDR
1. Pattern Analysis
- Rectangle Pattern (10 Months)
- The chart showcases a well-defined Rectangle Pattern, a consolidation phase that has lasted for 10 months.
- The upper boundary of the rectangle is at ₹372, which acts as a resistance level, while the lower boundary is near ₹280, serving as strong support.
- The price is attempting to break out of the rectangle, with a potential move higher if the breakout sustains.
2. Volume Analysis
- Volume and Price Action
- Significant volume spikes are observed during recent price movements, especially during the breakout attempt.
- This increase in volume validates the breakout signal, suggesting strong buying interest.
- The earlier accumulation phase within the rectangle pattern also exhibited gradual volume buildup, indicating institutional participation.
3. Price Analysis
- Current Price Action
- The stock closed at ₹372, up 6.23% in the last session, indicating strong bullish momentum.
- The breakout from the rectangle is accompanied by sharp price action, further confirming the bullish trend.
- Candlestick Patterns
- Recent bullish candlesticks with long bodies and minimal wicks highlight sustained buying pressure near resistance levels.
4. Validation of Bullish Signal
- Breakout Confirmation
- A decisive close above ₹372 on high volume confirms the rectangle breakout, signaling the continuation of the uptrend.
- Sustaining above ₹372 in the coming sessions will be crucial for validating the bullish move.
- Key Levels
- Support Levels: ₹280 (rectangle base) and ₹320 (midpoint of rectangle).
- Resistance Level: ₹372 (breakout level).
5. Entry Point Determination
- Recommended Entry: A buy signal is triggered if the stock sustains above ₹372 with continued volume support.
6. Target Setting
- Pattern Target
- The height of the rectangle (~₹92, from ₹280 to ₹372) is added to the breakout level (₹372).
- Target Price: ₹464.
7. Stop Loss Placement
- Recommended Stop Loss: Place the stop loss at ₹340, slightly below the breakout level, to protect against false breakouts.
