Bullish Reversal from Order Block at Trendline
Key Observations:
Order Block: A strong bullish order block is aligned with the ascending trendline near ₹500-₹491, suggesting a high-probability support zone.
Trendline Support: The price is respecting a long-term ascending trendline, which acts as a dynamic support level.
Change of Character (ChoCh): A bullish change of character has occurred, breaking out of the downtrend channel.
Trade Plan:
Entry:
Early Entry: Near ₹525 on a retest of the breakout zone.
Conservative Entry: Near ₹500-₹491, aligning with the order block and trendline.
Stop Loss:
Below ₹490, invalidating the bullish order block and trendline support.
Targets:
Target 1: ₹580 (recent swing high).
Target 2: ₹638 (pattern projection based on the breakout move).
Risk-Reward Ratio:
Highly favorable, especially for an early entry near the trendline.
Indicators for Confirmation:
RSI: Currently rebounding from oversold levels, showing bullish momentum. A sustained RSI above 50 will further confirm strength.
Volume: Watch for increasing volume near the breakout or retest zones.
Strategy Notes:
Early Entry Caution: For aggressive traders, entering near ₹525 may involve higher risk. Monitor for confirmation (e.g., bullish candlestick patterns or volume spikes).
Scaling In: Consider scaling into the position if the price holds the ₹500-₹491 zone with bullish price action.
Exit Plan: Trail your stop-loss as the price moves towards targets to lock in profits.
Order Block: A strong bullish order block is aligned with the ascending trendline near ₹500-₹491, suggesting a high-probability support zone.
Trendline Support: The price is respecting a long-term ascending trendline, which acts as a dynamic support level.
Change of Character (ChoCh): A bullish change of character has occurred, breaking out of the downtrend channel.
Trade Plan:
Entry:
Early Entry: Near ₹525 on a retest of the breakout zone.
Conservative Entry: Near ₹500-₹491, aligning with the order block and trendline.
Stop Loss:
Below ₹490, invalidating the bullish order block and trendline support.
Targets:
Target 1: ₹580 (recent swing high).
Target 2: ₹638 (pattern projection based on the breakout move).
Risk-Reward Ratio:
Highly favorable, especially for an early entry near the trendline.
Indicators for Confirmation:
RSI: Currently rebounding from oversold levels, showing bullish momentum. A sustained RSI above 50 will further confirm strength.
Volume: Watch for increasing volume near the breakout or retest zones.
Strategy Notes:
Early Entry Caution: For aggressive traders, entering near ₹525 may involve higher risk. Monitor for confirmation (e.g., bullish candlestick patterns or volume spikes).
Scaling In: Consider scaling into the position if the price holds the ₹500-₹491 zone with bullish price action.
Exit Plan: Trail your stop-loss as the price moves towards targets to lock in profits.
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