Voltas Bearish Breakdown: Rising Wedge PatternVoltas Ltd, on the 1-hour chart, has recently shown a classic bearish chart pattern — a rising wedge — which has now broken down. This setup often leads to sharp corrective moves, especially when the pattern forms after a strong rally, as seen in this case.
1. Formation of the Rising Wedge
Over the last few trading sessions, Voltas formed a rising wedge pattern, where the price was making higher highs and higher lows, but within a narrowing channel. This usually indicates weakening bullish momentum and sets the stage for a breakdown once the lower support trendline is breached.
2. Breakdown Confirmation
A decisive breakdown below the wedge's support line has been witnessed. This move was backed by a sharp red candle, confirming that bears have taken control. The price is now trading below ₹1400, a psychological round level, adding more weight to the breakdown signal.
3. First Downside Target: ₹1371
Post-breakdown, the immediate short-term target stands at ₹1371. This level may act as temporary support where some buyers might step in. Traders who have entered short trades can consider partial profit-booking at this zone.
4. Final Projected Target: ₹1315.85
If bearish momentum sustains, we can expect a full breakdown as per the wedge height projection, which brings the price target close to ₹1315.85. This would complete the measured move from the wedge breakdown and could serve as a key reversal or bounce zone.
5. Ideal Entry and Stop Loss Levels
Traders looking to ride this move can consider re-entries near ₹1390–1395 on minor pullbacks. A stop loss above ₹1415 would protect against false breakdowns or sudden reversals. This setup offers a high reward-to-risk ratio if managed correctly.
6. Momentum Shifting to the Bears
The breakdown structure shows a shift in control from buyers to sellers. If broader market sentiment also turns weak, Voltas can continue its downward trajectory over the coming sessions. Momentum traders should closely monitor for follow-through price action.
7. Important Trading Note
This is a trend reversal structure. Avoid counter-trend trades until strong support confirmation is seen. Always trail your stop loss once Target 1 is achieved, and don’t hold overnight positions without risk assessment if you’re trading with leverage.
