HEG Weekly Chart Analysis

anteontem

Key Observations:
1.Resistance Zone at ₹550:

->The stock has been testing the ₹550 resistance level for an extended period.
->Recent attempts to break above this level were accompanied by strong volumes but faced selling pressure, leading to a pullback.

2.Uptrend Supported by Trendline:

->The stock is respecting a long-term upward sloping trendline, currently providing support near ₹400–₹420 levels.
->This indicates a medium-term bullish structure.

3.Consolidation in Range:

->HEG has been consolidating in a wide range of ₹400 to ₹550 for a significant time.
->This could be forming a potential Ascending Triangle pattern—a bullish continuation structure.

4.Volume Analysis:

->High volumes during the breakout attempts signal strong participation, but the inability to sustain above ₹550 suggests profit-booking at higher levels.

Trading Plan:

1.Breakout Opportunity:

->A decisive close above ₹550–₹560 with strong volumes can trigger a bullish breakout.
Potential upside targets: ₹650–₹700, based on the triangle pattern height.

2.Support Buying:

->Accumulation near the trendline support at ₹400–₹420 could be a good entry point if the stock pulls back.
3.Risk Management:

->Place a stop-loss below ₹400 for long positions, as a break below this level may invalidate the bullish structure.
4.Indicators to Watch:

->Monitor RSI and MACD for confirmation of momentum during a breakout or potential divergences in the current move.

Summary:
HEG is showing strong consolidation near a critical resistance level. A breakout above ₹550 could lead to a fresh rally, while the trendline provides strong downside protection. Keep an eye on the price action and volume for confirmation! 📈🔥

What’s your take on HEG? Share your thoughts in the comments below! 😊