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Rectangle

Lyka Labs Ltd. 155 [LYKALABS]– Rectangle Pattern (2.5 Years) 1. Rectangle Pattern Overview - Formation Details: - The stock exhibits a 2.5-year rectangle pattern, a classic consolidation pattern indicating indecision between buyers and sellers. - The resistance is clearly identified at ₹160, with multiple failed attempts to breach this level. - The support zone lies between ₹135-₹140, reflecting consistent buying interest at these levels. - Significance: - This prolonged consolidation signifies accumulation, often a precursor to a significant breakout. - A breakout above ₹160 would indicate renewed bullish momentum, with the potential to target higher price levels. 2. Volume Analysis - Volume Trends: - Volume has shown signs of strengthening as the price approaches the upper boundary of ₹160, indicating increased market participation. - A breakout above ₹160, accompanied by a volume surge, would confirm the bullish move. - The rising volume during recent price advances underscores growing investor interest and potential accumulation. 3. Key Levels - Resistance Levels: - ₹160: Critical breakout level; a decisive close above this will trigger a bullish rally. - ₹200-₹240: Post-breakout targets based on the height of the rectangle pattern. - Support Levels: - ₹135-₹140: Strong support zone and the lower boundary of the rectangle. A breach below this level would invalidate the bullish setup. 4. Price Target Calculation - The height of the rectangle pattern (₹160 - ₹135 = ₹25) is added to the breakout level: - First Target: ₹185 - Extended Targets: ₹200 and ₹240 5. Price Action Highlights - Recent Price Movement: - The stock is trading near its upper boundary, indicating pressure on the resistance level at ₹160. - The gradual higher lows within the rectangle indicate a bullish bias as buyers gain control. - Candlestick Patterns: - The recent bullish candlesticks reflect buying strength, with minimal selling pressure evident. - Strong bullish engulfing patterns near support zones further validate the presence of demand. 6. Trade Setup - Breakout Trade: - Entry: Above ₹160 on confirmed breakout with high volume. - Targets: - Short-Term: ₹185 - Mid-Term: ₹200 - Long-Term: ₹240 - Stop Loss: ₹140 (below support zone) to manage risk. - Pullback Opportunity: - If the price retraces after the initial breakout, the ₹160 level could act as a support for a retest, providing a better entry point. #Trading #Investing #TechncialAnalysis #Stocks
NSE:LYKALABSLong
by Mr_Chartist_
Prajindustries All set for a breakout? ✅Bullish Engulfing from support levels. ✅Good Volume ✅Dry volume when pulling back. ✅Trading above Key DMAs. ❗️Positional SL is very deep(20%)- Adjust SL as per your appetite and position sizing technique. Position sizing is very important if you are building positions. Aggressive trader's SL after the breakout is 761 closing basis. The view is personal. Please do your due diligence before trading. This is not a buy-sell recommendation. We missed the ideal entry when the stock broke out of the trendline area ( 718-19 range) -Market Cap₹ 14,798 Cr. -Current Price₹ 803 -Stock P/E 53.2 -ROCE29.3 % -ROE23.3 %
NSE:PRAJINDLong
by sagartharayil