DRREDDY - 8th July 2022Stock hitting resistance zone between 4400-4300.
Bears will try to push prices lower from here as long these levels holg
DRREDDY trade ideas
DRREDDY - Getting ready to break 4420-4450 resistance zoneDRREDDY can make a sharp up move past it's resistance zone of 4420-4450 levels.
DR REDDY Long Swing Trade DRREDDY is forming a double bottom on 1D timeframe, there could be a bullish rally after the breakout of neckline of the Double Bottom. There is also a confluence of 200 EMA on daily timeframe. You can go long after a good breakout of 4440/4435. Place Stop-loss according to you risks, suggested targets : 1st Target: 4680 2nd Target : 4890 .
At 4Hour timeframe we can see a formation of Double Top. The stock has given a breakout of the Double Top which is a good sign for bullishness.
DrreddyOn verge of breakout structure is lower high at the moment.. if breaks and closes can be good long candidate
Inflection PointWhen Price consolidate near 200 Day Moving Average and break the upper boundary of the consolidation zone then high probability price continue the trend .
DRREDDY - vcp Volatility contraction pattern
Seems good to long
On verge of breakout near 200 dma
A good setup for positional trade
FRESH SHORT OPPORTUNITY POSSIBLY DR REDDY LABS #DOCTORREDDYPossibly a fresh short opportunity in reddy after lookout a nect move or closing breaking important support and on rsi too giving negative signals
DRREDDY | INCOMING BREAKOUT | 2:1 RRDrreddy has been repeatedly testing an important resistance level of 4400. Forming a double bottom, Drreddy has established a good base & is now ready for breakout above 4400. Trade is as follows.
Entry 4365
SL 4239
Targets 4644, 4796.
Please trade according to your risk appetite. Once in the trade, enter SL first.
Happy Trading!
Good bullish set-up formation in Dr Reddys LabThe stock is testing it's 1 year old trendline and has made a double bottom pattern.
4440 is a strong support/resistance zone.
Buy above 4440 on closing basis for positional 3-5% upmove.
Disclaimer: This idea is for educational purpose and kindly buy as per your risk management. I always encourage partial booking 1-2% profits and use a strict trailing stop loss. Idea is positional and only carry position on day closing basis.
Learn & earn,
Dr . Tanya Kumar
DR REDDY LABS - 30min DECLINING - SHORTIf we look the chart the accumulation occur after the price has fallen.
The EMA 200 also started to flatten and the price was also below the 200 EMA.
In accumulation we see the price was in the range. The breakout happend on 8Jun2022.
After breakout of resistance the price was at Advancing stage. At this stage price is above 200 EMA.
Currently the price was in distribution stage and the price whip back and forth around the 200 EMA. If the Price breaks the support of the Range then it will be in Declining stage. The price will go down if it breaks the distribution stage.
We can go shorting for the next few days. Target is mentioned in chart!
Buying Climax: What, Why and HowBuying Climax:
is a situation on the chart that represents ‘exhaustion’. This is the sharpest upward price surge where the last set of buyers enter the stock, thinking that the stock is going to the moon and never look back. This also reflects ‘Greed’ entering in to the stock. Investors who bought at the lower prices, during accumulation, take it as an opportunity to exit from the stock. Therefore, it represents those pre-conditions that lead to price correction.
The climax is associated with very wide range up bars/candles with exceptional volumes, followed by supply in most cases.
I will take up the case of Dr. Reddy with no particular reason but as a good example that just came in front of me and I thought it will be a good idea to share with the trading community what a climactic action looks like.
Dr. Reddy had been in a downtrend between Oct2015 to Aug2017. It then consolidated for more than 2years before it decisively broke out of Rs2800 supply zone in Jan-Feb2020. It retested the supply zone in Mar2020 market correction and held it as a new support.
Thereafter we can observe three major breakouts seen on this weekly chart, which would help us in understanding a buying climax in a better way.
At every breakout you need to observe the range of the breakout candle and the volume involved in the breakout. A good breakout needs a wider candle with a strong closing and good volume. Let us see what happened.
Breakout 1
Range of the candle – 600 pts or around 18%
This seems an average type of range compared to the pre-breakout candles. So nothing alarming here.
Volume –
Slightly higher than the average volumes.
Breakout 2
Range of the candle – 600 pts or around 15%
It’s also an average type of range
Volume –
Is very high, more than any candle in this uptrend since 2020
Breakout 3
Range of the candle – 1160 pts or around 27%
This is exceptionally wide range
Volume –
Exceptionally high (More than 36mn). Not seen anywhere on the chart.
This is buying climax. You can see that, on the very next week, there was extremely high volume on the downside. This further validates that seller have entered the market and the upside could be limited.
We can draw a resistance line from this Sep2020 highs. Price corrected 25% from this resistance in the next 5-6months.
Also observe the Breakout4 (Jun2021) of the resistance (vertical dotted line)
Candle Range – narrow
Candle volume – very low compared to previous breakouts.
This is a weak breakout which could not sustain and is followed by a big supply candle. Further indication that the stock has lost steam.
I hope this idea was helpful.
Do like and comment for more such educational posts in the coming days.
Dr Reddy Lab at Crucial level of BODr Reddy Lab is at Level of Breaking Weekly trendline.
If break with Good Volume and candlestick strenght we could see another level of target upside.
#My view: Dr Reddy Lab is looking good and ready for breakout and strenght is also good it may break this trend for upside.
RSI level is also above 50 which is good for bullish.
swing trade we can get a good swing trade in DRREDDY .
if it breaks the level of 4480 with strong candle and sustain,
then we can go long it it.
our first target will be of 4717 and second will be 4909.
and can put the stop loss below the support my stop loss will be near 4390.
if our trade goes in right direction then we can book around 1:4 ratio.
LETS SEE.
DRREDDY READY TO FLY HIGHCatch before its trendy
1. Reason for go long
multiple our advance indicator bullish.
near to trend line break out may close above very soon.
less to loose max to gain.
after all its depends on you.
2. Dont short.
3. please trade as per your own risks, we are trying to provide you a correct suggestion.
thanks& happy trading.
DRREDDY - 10th June 2022Stock finding Resistance between 4500-4300 Levels.
Bears can dominate as long as these levels hold and try to push prices lower
Dr Reddy'sAdd to your watchlist
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DR REDDY On break out looking good for long entry
long consolidation and levels tested multiple times
SIMPLE PRICE ACTION IN DR REDDYS LABS.NSE:DRREDDY
Taking support at major up trendline.
A double bottom pattern is been forming in DR REDDY LABS, And at the Neckline zone, there is downtrend resistance 4480.
If the daily candle closes above 4480, enter at the high of the candle.
trendline breakout and double bottombuy above 4410 in intraday or swing trade
stoploss for swing trade daily candle close below 44250
For stoploss in Intraday use 5 minute chart and see nearest support.
for target use 5 min chart and fibonacci pivots as i don't keep predefined target.
try to book partially and trail.
Note: this is not a prediction for LONG/SHORT, trade will trigger only on given level as per technical analysis
NOTE: For Gapup or bo before 9:20
If gapup is more than 1% from bo level than avoid completely.
if less than 1% or gives bo before 9:20 than wait for
first 5 minute candle and entry above 5 minute candle
and revised SL below candle Low.
