Solar Industry (NSE) at Make-or-Break Level ? NSE:SOLARINDS
Summary:
📈 Key Levels
Breakout: Cleared resistance at 13,300 with a strong bullish engulfing candle.
Pattern: Bullish Flag & Pole (pole size: 3,777.80 points) suggests a measured move target of 17,077.80.
Trend: Price above 20/50/200 EMAs on daily, weekly, and monthly timeframes.
Risk: Overbought RSI (14) and bearish MACD crossover hint at potential consolidation.
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Technical Analysis
1. Bullish Structure Confirmed 🚩
Bullish Engulfing Candle : Broke above critical resistance at 13,300 (near all-time high), signaling bullish momentum.
Flag & Pole Pattern: The "pole" (3,777.80-point rally) followed by a consolidation "flag" suggests a potential repeat of the uptrend post-breakout. Historical symmetry often sees targets equal to pole size.
2. Trend Alignment ✅
Multi-Timeframe Support: Price trades above all key EMAs (20, 50, 200) on daily, weekly, and monthly charts, confirming a strong bullish bias.
3. Divergence Alert ⚠️
RSI (14): Overbought at 70+ warns of short-term exhaustion.
MACD: Bearish crossover on daily charts adds caution.
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Trade Setup
Entry Zone:
Aggressive: Current price (above 13,300).
Conservative: Retest of 13,300 as support.
Targets: 17,077.80 (measured move: 13,300 + 3,777.80).
Stop Loss: 13,000 (low of the bullish engulfing candle) or 12,640 (prior swing low) for wider risk tolerance.
Risk Management
Position Size: Risk ≤1-2% of capital.
Confirmation: Watch for a daily close below 13,000 to invalidate the setup.
Conclusion
The Solar Industry (NSE) is at a critical juncture: bullish momentum clashes with overbought signals. While the Flag & Pole pattern and EMA alignment favor a rally to 17,077+, traders must respect the RSI/MACD divergence. A decisive hold above 13,300 could fuel the next leg up, but a breakdown below 13,000 may trigger profit-taking.
Key Action: Monitor price action above 13,300 for confirmation!
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Disclaimer: This is not financial advice. Always conduct your own analysis.
#NSE #SolarStocks #TechnicalAnalysis #BreakoutAlert
