Greenply Faces Resistance, Breakout, and RetestNote: This analysis is for educational purposes only and should not be considered as financial advice. I am not a SEBI registered analyst.
Greenply, a stock that has been facing resistance since December 2022, recently broke out of a rectangle pattern on 5th May with significant volume. After the breakout, the price has moved up and is now approaching a retest of the breakout level. The previous resistance level is expected to act as support.
Here's a plan for potential trade entry:
Buy Entry: Around 154.75
Stop Loss (SL): Below the daily demand zone, approximately 151.5
Target: Below the daily supply zone, around 162
Risk-to-Reward Ratio: 1:2
It's important to note that trading carries inherent risks, and it's crucial to manage risk through proper position sizing and risk management techniques.
Summary:
Greenply has faced resistance since December 2022 but recently experienced a breakout from a rectangle pattern. The price is now testing the breakout level, which is expected to act as support. Traders may consider a buy entry around 154.75, with a stop loss below the daily demand zone at 151.5. The target is set below the daily supply zone around 162, resulting in a risk-to-reward ratio of 1:2.
Remember, always do your own research and consider multiple factors before making any trading decisions.
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Technical Terms:
Resistance : A price zone where selling pressure tends to overcome buying pressure, causing the price to stall or reverse .
Breakout : A price movement above a key resistance level, indicating a potential continuation or reversal of the trend .
Retest : When the price returns to a previously broken level to test its newfound support or resistance .
Support : A price zone where buying pressure tends to overcome selling pressure, preventing the price from falling further .
Stop Loss (SL) : A predetermined price level at which a trader exits a position to limit potential losses .
Risk-to-Reward Ratio : A measure of potential profit relative to potential loss in a trade, calculated by dividing the target price distance by the stop loss distance
