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Riba Textiles Limited

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RIBATEX trade ideas

Riba Textiles Ltd. 95.81 [RIBATEX] – Cup and Handle Pattern (5 Y1. Pattern Overview - Formation Details: - The stock has developed a 5-year cup and handle pattern, a strong continuation formation indicating the potential for a bullish breakout. - The cup portion reflects a gradual decline and recovery, showcasing accumulation over time. - The handle portion is a short consolidation phase near the resistance, preparing for a breakout. - The key resistance level is identified at ₹95, which aligns with the top of the pattern. - Significance: - This long-term cup and handle pattern is a highly reliable signal of bullish sentiment. - A breakout above ₹95 signals the resumption of an uptrend, with strong momentum expected. 2. Volume Analysis - Volume Trends: - Volume shows increasing participation, especially during the recent rally toward the resistance zone. - A breakout accompanied by a volume surge would confirm the bullish move. - The accumulation phase within the handle is characterized by relatively lower volumes, which is typical in such patterns. 3. Key Levels - Resistance Levels: - ₹95: Critical breakout level. A sustained move above this will open the path for higher targets. - ₹130: Projected target based on the height of the cup. - Support Levels: - ₹80: Immediate support level, which aligns with the lower boundary of the handle. - ₹70: Secondary support, below which the bullish structure would be invalidated. 4. Price Target Calculation - The height of the cup (₹130 - ₹70 = ₹60) is added to the breakout level (₹95): - First Target: ₹130 (psychological resistance). - Extended Target: ₹150 (potential follow-through after breakout). 5. Price Action Highlights - Recent Price Movement: - The stock is currently testing the critical ₹95 resistance, with bullish candlesticks indicating upward pressure. - The gradual rise in lows during the handle formation supports the bullish bias. - Candlestick Patterns: - The formation of bullish engulfing candles near the ₹80 support indicates strong buying interest. - A breakout candle above ₹95, preferably a bullish marubozu, would confirm the uptrend. 6. Trade Setup - Breakout Trade: - Entry: Above ₹95 on confirmed breakout with significant volume. - Targets: - Short-Term: ₹110 - Mid-Term: ₹130 - Extended Target: ₹150 - Stop Loss: ₹80 (below handle support) to minimize risk. - Pullback Opportunity: - If the price retests ₹95 after the breakout, it could provide a secondary entry point for traders. #Trading #Investing #Stocks #TechnicalAnalysis
BSE:RIBATEXLong
by Mr_Chartist_