Shaily Eng Plastics Makes a Power MoveNSE:SHAILY Makes a Power Move on Hourly Charts after Q4 Results.
Price Action Analysis:
The stock is currently trading at ₹1,811.20. After consolidating near the ₹1,650-1,680 support zone for several days, SHAILY has broken out strongly to the upside, reclaiming previous highs near ₹1,820. The price action shows a series of higher lows since the early May bottom, indicating increasing bullish momentum.
Volume Analysis:
Volume has been healthy at 46.63K shares, significantly above the 30.96K average volume. This confirms genuine buying interest supporting the recent breakout. The volume spikes align with key price movements, particularly during the recent bullish moves, which validates the strength of the current uptrend.
Support & Resistance Levels:
- Key Resistance: ₹1,835-1,850 zone (previous high)
- Immediate Breakout Level: ₹1,820 (now acting as support)
- Major Support: ₹1,650-1,680 zone (multiple tests with green arrows)
- Base Formation: A solid base was formed between ₹1,650-1,680 after the pullback from April highs
Technical Patterns:
1. Rectangle Pattern: The stock formed a rectangular consolidation pattern between mid-April and mid-May (₹1,650-1,680 range)
2. Triple Bottom: Three distinct touches at the ₹1,650-1,680 support zone (marked with green arrows)
3. Bull Flag: The recent consolidation after the strong upward move from early May represents a bull flag pattern that has now resolved to the upside
Trade Setup:
- Entry Point: ₹1,815-1,820 on a pullback to the breakout level
- Stop Loss: ₹1,765 (below the recent swing low)
- First Target: ₹1,850 (previous resistance)
- Second Target: ₹1,920 (measured move from the rectangle pattern)
- Final Target: ₹2,000 (psychological level and potential measured move target)
Risk Management:
- Position sizing: Limit exposure to 2-3% of trading capital
- Risk-Reward Ratio: Approximately 1:1.5 based on the stop loss and the second target
- Trailing stop: Move stop loss to breakeven after the price reaches the first target
NSE:SHAILY showed exceptional technical strength with the recent breakout above resistance after forming a solid base. The increased volume confirms buyer interest, and the prior triple bottom pattern adds confidence to the bullish outlook. Traders should watch for the continuation of the breakout with the mentioned targets, while protecting capital with the defined stop loss.
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NO RECO. For Buy/Sell.
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Disclaimer: "I am not a SEBI REGISTERED RESEARCH ANALYST AND INVESTMENT ADVISER."
This analysis is intended solely for informational and educational purposes and should not be interpreted as financial advice. It is advisable to consult a qualified financial advisor or conduct thorough research before making investment decisions.
