Rounding Bottom (Cup and Handle) Setup on Suryalakshmi Cotton MiThis chart displays a long-term bullish setup forming in Suryalakshmi Cotton Mills Ltd. on the weekly timeframe. The stock has been consolidating for several years, showing a distinct rounding bottom pattern, which is a classic reversal signal often associated with significant upside potential. Here's a detailed breakdown of the trade idea:
Technical Observations:
Rounding Bottom Formation:
The price action from 2014 to 2024 clearly outlines a massive rounding bottom, suggesting that the stock has transitioned from a bearish to bullish phase.
This structure also aligns with a cup and handle-like formation, providing further confirmation of a strong reversal.
Support Trendline:
The price has consistently respected a rising support trendline in the current phase of the rally, indicating bullish momentum.
Key Resistance Levels:
Selling Order Block: The stock is approaching a critical zone of supply between ₹195 and ₹250. This area corresponds to previous highs and is a strong resistance zone to watch for profit booking.
All-Time High: The ₹250 level remains a psychological barrier.
RSI Oscillator:
The Relative Strength Index (RSI) is shifting between bullish and bearish zones, currently climbing towards bullish levels, signaling potential continuation.
Volume and Price Action:
Volume is gradually increasing in recent weeks, confirming the breakout potential from the rounding bottom.
Trade Setup:
Entry : Look to accumulate near the current levels around ₹81–₹85, especially on dips along the support trendline.
Stop Loss: Place a stop loss below the recent support zone at ₹63 to protect against downside risk.
Target Levels:
1st Target: ₹195 (Selling order block).
2nd Target: ₹250 (All-time high).
Beyond ₹250: If the breakout sustains above the all-time high, the price could rally further into uncharted territory.
Risk-Reward Ratio:
The trade offers an excellent risk-to-reward ratio, with a potential upside to ₹195 and ₹250, compared to the limited downside risk to ₹63.
SURYALAXMI trade ideas
BREAKOUT, SURYALAKSHMI COT, 80% RETURNSBUY - SURYALAKSHMI COTTON
CMP - Rs. 66
Target - 1: Rs. 85
Target - 2: Rs. 98
Target - 3: Rs. 119
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Timeframe - 3 months - 10 months
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Technicals - Bullish Flag Breakout
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This is just a view by an expert analyst, please invest at your own risk.
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SURYALAXMI --- Heading towards 100NSE:SURYALAXMI
nice setup, heading towards 100
might face resistance at 75 zone, crossing this hurdle will take this stock towards 100
setup looks to be good and worth researching
cmp 67.15
This analysis is being done for educational and knowledge-sharing purposes.
This article does not offer any kind of buy or sell advice.
All stocks are positional and are held for a short to medium period of time.
Everyone is expected to conduct their own research and analysis to determine whether my point of view aligns with yours.
Suryalaxmi Cotton - Weekly - CMP 57Huge rounding bottom + Triangle consolidation.
Respecting 200 MA on weekly and just below 200 MA on daily.
Low Price to book value (undervalued)
On Breakout, Targets can be 66-71-78-91-99 .
Broader targets 112-123
SL - weekly closing below 50.
*Trail your profits.
This is just a view, trade on your own risk.