This chart represents Kabra Extrusion Technik Ltd. on a weekly timeframe. Here's a brief analysis:
Trend Overview:
The stock was in a strong uptrend from early 2021 to mid-2022, reaching higher levels with increasing volume. It then entered a consolidation phase with lower highs, forming a descending triangle-like pattern. Key Levels:
Support level: Around ₹450 (black horizontal line), which the stock has respected multiple times during the consolidation phase. Resistance level: Around ₹510-516, where it is currently trading after breaking out of the descending trendline (orange line). Breakout:
The stock has shown a breakout above the descending trendline with a strong weekly close at ₹509.90, gaining 8.76% in this session. This indicates a potential trend reversal. Volume Analysis:
Increased volume during the breakout suggests strong buying interest and the possibility of further upward momentum. Outlook:
If the stock sustains above ₹510, it could aim for higher targets. A retest of the ₹510 level is possible before moving upward. Failure to sustain above ₹510 might see the stock pulling back towards ₹450 support. This breakout aligns with a bullish scenario, provided the resistance is successfully converted into support.
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