JK Tyre - Post Shakeout Breakout with Volume

JK Tyre & Industries Ltd – Post Shakeout Breakout with Volume Confirmation

JKTYRE

📈 Pattern & Setup:

JK Tyre has shown a clean technical setup where a shakeout was followed by a strong bullish candle backed by healthy volume — a clear sign of absorption by smart buyers. The price has now successfully closed above the resistance zone around 382–385 and is holding above it with conviction.

The immediate trend structure shows higher highs and higher lows forming, confirming that the uptrend is resuming. Volume expansion on breakout days adds weight to the move, suggesting that the stock is under accumulation and could stretch toward 420+ in the coming sessions.

📝 Trade Plan:

✍Entry: Above 385 (breakout confirmation)
Add More: Above 390 (for positional scaling)

🚩Stop-Loss: 368 (below the latest shakeout low)

🎯Targets:

Target 1 → 405
Target 2 → 422 (9% potential move)

💡 Pyramiding Strategy:

1. Enter 60% position above 385
2. Add 40% above 390 once it sustains with strong volume
3. Trail stop-loss to 375 after the price moves beyond 400

🧠 Logic Behind Selecting this Trade:

A breakout immediately following a shakeout is one of the most reliable price action signals. It indicates that sellers have been fully absorbed, and fresh demand is stepping in. Volume confirmation further validates the move, turning this into a low-risk, high-reward setup with clear structure and direction.

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🔴Disclaimer:

This analysis is for educational purposes only. Not a buy/sell recommendation. Please do your own research or consult your financial advisor before trading.