Swing

há 3 dias

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.