Trident Ltd. - Bullish Breakout with High Reward Potential (NSE)

9 de jan.

Trident Ltd. has broken through a key resistance level on the daily chart, signaling potential for significant upward momentum. This idea analyzes the technical setup and outlines a potential trading strategy with attractive risk-reward characteristics.

Key factors supporting the bullish outlook:

Breakout above 44: The stock recently cleared a crucial resistance level at 44, establishing a bullish trend confirmation.
Strong volume: Increased volume accompanied the breakout, indicating strong buying pressure and investor confidence.

Based on these observations, here are some possible scenarios:

Scenario 1: The price continues to move higher in the short term, potentially reaching the next resistance level around 57.
Scenario 2: The price pulls back in the short term as the RSI cools down, but then resumes its upward trend.
Scenario 3: The high valuation and low institutional participation lead to a correction in the stock price.

Trading strategy:

Entry: Consider entering a long position if the price remains above 50 with confirmation from bullish candlestick patterns or If it pull back at 40.
Target: Potential targets can be set at 57 (next resistance level) and 65 (psychological level and longer-term target).
Stop-loss: Place a stop-loss just below the breakout level.