UPL currently finds itself within a crucial support range of 600-616, aligning with the 0.38 Fibonacci retracement level. An additional support layer emerges in the 512-529 range, coinciding with the 0.5 Fibonacci level – a zone that could potentially serve as a logical stop-loss point.
Post a bullish rally that spanned from March 23, 2020, to June 7, 2021, the stock has since entered a consolidation phase. This phase becomes evident when observing the diminished trading volumes in the aftermath of the rally. Although the stock has slipped below its 200-day moving average, a prudent approach suggests awaiting the emergence of bullish signals.
UPL
UPL
These signals might manifest as the morning star, engulfing candle, or hammer candlestick patterns. Additionally, keeping a vigilant eye on chart patterns or instances of sudden upward momentum, reminiscent of the occurrence on July 23, 2018 – a time when the stock witnessed a surge just below the 200-day moving average – could provide additional cues pointing towards a potential bullish trend.
It's noteworthy that the initial support area mentioned above presents an attractive trading opportunity, boasting a risk-reward ratio of approximately 2.5. Assuming the target lies within the realm of all-time highs (ranging between 846 and 861), careful consideration of these elements could pave the way for a well-informed trading decision.
Post a bullish rally that spanned from March 23, 2020, to June 7, 2021, the stock has since entered a consolidation phase. This phase becomes evident when observing the diminished trading volumes in the aftermath of the rally. Although the stock has slipped below its 200-day moving average, a prudent approach suggests awaiting the emergence of bullish signals.
UPL
UPL
These signals might manifest as the morning star, engulfing candle, or hammer candlestick patterns. Additionally, keeping a vigilant eye on chart patterns or instances of sudden upward momentum, reminiscent of the occurrence on July 23, 2018 – a time when the stock witnessed a surge just below the 200-day moving average – could provide additional cues pointing towards a potential bullish trend.
It's noteworthy that the initial support area mentioned above presents an attractive trading opportunity, boasting a risk-reward ratio of approximately 2.5. Assuming the target lies within the realm of all-time highs (ranging between 846 and 861), careful consideration of these elements could pave the way for a well-informed trading decision.