Riding the Bull with FLEXITUFF - BreakoutStock: NSE:FLEXITUFF
Timeframe: Daily chart
Current Price: 39
Breakout Level: ₹34
Trade Overview:
In this trade idea, we'll focus on FLEXITUFF International Limited, which has shown promising technical signals. The stock has broken out of a bullish wedge pattern, supported by a surge in volume, and it's trading above the 200 EMA (Exponential Moving Average). The confluence of these factors suggests a potential bullish move. A retest at the breakout level can offer an attractive entry point.
Trade Plan:
1. Entry Strategy:
Buy FLEXITUFF if the price convincingly breaks above the breakout level at ₹34 and then retraces to retest this level, confirming it as new support.
2. Stop-Loss:
Set the stop-loss at ₹25, allowing some room for price fluctuations while safeguarding against unexpected reversals.
3. Take-Profit Targets:
Set take-profit target 1 at ₹50, take-profit target 2 at ₹66, and take-profit target 3 at ₹80. These levels are derived from old support levels that may now act as resistance.
4. Risk Management:
Given the potential for substantial gains, manage your risk by allocating a reasonable percentage of your trading capital (e.g., 1-2%).
As the trade progresses in your favor, consider trailing your stop-loss to lock in profits and protect against reversals.
5. Additional Considerations:
Monitor the broader market conditions and the stock's sector for a better understanding of the overall sentiment.
Stay updated on any company-specific news or events that could impact FLEXITUFF's performance.
Be prepared for potential resistance at the old support levels, as they may act as hurdles to the stock's upward movement.
Example:
Suppose FLEXITUFF's price breaks above ₹34, confirms support at this level, and you enter a long position at ₹34. You set a stop-loss at ₹25. Your take-profit targets are placed at ₹50, ₹66, and ₹80, aiming to capture potential gains from the stock's upward momentum.
Please remember that trading involves risk, and market conditions can change rapidly. The scenario described here is based on hypothetical data, and actual market outcomes may differ. Perform thorough research, consult multiple sources of information, and make informed decisions based on your analysis and risk tolerance.
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Note: This trade idea is for educational purposes only and should not be considered financial advice. Always perform your own research and consider consulting with a financial professional before making trading decisions.
