Swing1. Price Action
The candlesticks represent daily movements of the stock price.
Green Candles: Price closed higher than it opened (bullish).
Red Candles: Price closed lower than it opened (bearish).
2. Key Trendlines
Orange Line (Long-term Trendline):
This was the stock's previous downtrend, connecting lower highs from earlier price action.
The stock broke above this trendline around mid-2023, indicating a reversal of the bearish trend.
Black Lines (Descending Channel):
The current price action is forming a descending channel (or a falling wedge).
This pattern indicates consolidation with a bias for a potential breakout above the upper trendline.
3. Horizontal Blue Line
The blue line at ₹108.56 represents a key support level, where the stock found buying interest multiple times.
4. Current Status
The price is at ₹115.20, slightly above the support zone and testing the upper boundary of the descending channel.
This indicates a potential breakout opportunity, depending on whether the price sustains above the channel.
5. Implications
A breakout above the black upper trendline could lead to bullish momentum, targeting resistance levels around ₹120–₹130.
Failure to break out might result in further consolidation within the channel, with the next support around ₹108.56.
Key Points to Watch
Watch for a daily close above the channel to confirm a breakout.
Volume: High volume on a breakout strengthens the bullish case.
Resistance Levels: Immediate resistance lies around ₹120–₹130, followed by previous highs around ₹140–₹150.
