Hello Traders, Hope you're catching the right trends! so today we will discuss Hdfc bank on Daily chart as we can see that price formed a consolidation pattern following it's sharp uptrend in April. After a sustained rally, the share price paused and entered a sideways phase within a narrow 5% range, indicating temporary equilibrium between demand and supply. What makes this setup noteworthy is the position of the consolidation right above the prior resistance zone near 1880, which has now been tested as support. This behavior reflects classic price action dynamics, where old resistance turns into new supporta key trait of strength in trending markets.
Over the past weeks, the stock has been coiling within this tight rangeand creating a well defined rectangle pattern. The upper resistance of the range is marked around 1980. On the latest daily candle, the price has started to show intent to break out of this zone with momentum. If the breakout sustains with volume confirmation, it opens up the potential for a bullish continuation toward the projected target of 2080, a measured move equal to the height of the consolidation zone.
However it's important to remain objective if the price fails to sustain above the 1980 resistance and instead shows signs of rejection or downward traction, the breakout attempt may be considered a false move. In such a case, a reversal toward the lower end of the consolidation becomes likely. This opens up a short opportunity, targeting the support below which prior was resistance and marked on chart too. A breakdown from this range would further confirm bearish sentiment in the near term.
Risk management-: Invalidation is defined by a daily close in the opposite direction of the trade.
This publication is meant for only learnig purpose and not contains any kind of trading advice.
Good trades ahead, Amit.
Over the past weeks, the stock has been coiling within this tight rangeand creating a well defined rectangle pattern. The upper resistance of the range is marked around 1980. On the latest daily candle, the price has started to show intent to break out of this zone with momentum. If the breakout sustains with volume confirmation, it opens up the potential for a bullish continuation toward the projected target of 2080, a measured move equal to the height of the consolidation zone.
However it's important to remain objective if the price fails to sustain above the 1980 resistance and instead shows signs of rejection or downward traction, the breakout attempt may be considered a false move. In such a case, a reversal toward the lower end of the consolidation becomes likely. This opens up a short opportunity, targeting the support below which prior was resistance and marked on chart too. A breakdown from this range would further confirm bearish sentiment in the near term.
Risk management-: Invalidation is defined by a daily close in the opposite direction of the trade.
This publication is meant for only learnig purpose and not contains any kind of trading advice.
Good trades ahead, Amit.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.