Entry Zone: We recommend initiating a BUY position in JK Lakshmi Cement around the current levels, ideally between ₹880 - ₹890. This considers the strong closing above the resistance trendline.
Target 1 (T1): ₹925
Target 2 (T2): ₹950
Target 3 (T3): ₹980 (If momentum sustains above T2)
Stop Loss (SL): ₹860 (Strictly on a closing basis)
Channel Breakout: The stock has decisively broken out of a multi-month descending channel/symmetrical triangle pattern, indicating a potential strong reversal from a corrective phase. This breakout appears to be supported by a noticeable pickup in volumes.
Key Resistance Breach: The stock has also managed to close above a significant horizontal resistance level around ₹880-885, which has acted as a hurdle multiple times in the past. A sustained move above this level confirms bullish intent.
RSI Strength: The Relative Strength Index (RSI) is showing strength, trading well above the 50-mark and moving towards the overbought zone, confirming increasing buying momentum.
Positive Price Action: The overall structure suggests accumulation at lower levels, and the current breakout could initiate the next leg of the uptrend.
Favorable Risk-Reward: The setup offers a compelling risk-reward profile for a short-term trade, with significant upside potential compared to the defined stop-loss.
Key Risk: A failure to sustain above the ₹880 level or a close below the ₹860 stop-loss would invalidate the bullish view and could lead to renewed selling pressure.
Target 1 (T1): ₹925
Target 2 (T2): ₹950
Target 3 (T3): ₹980 (If momentum sustains above T2)
Stop Loss (SL): ₹860 (Strictly on a closing basis)
Channel Breakout: The stock has decisively broken out of a multi-month descending channel/symmetrical triangle pattern, indicating a potential strong reversal from a corrective phase. This breakout appears to be supported by a noticeable pickup in volumes.
Key Resistance Breach: The stock has also managed to close above a significant horizontal resistance level around ₹880-885, which has acted as a hurdle multiple times in the past. A sustained move above this level confirms bullish intent.
RSI Strength: The Relative Strength Index (RSI) is showing strength, trading well above the 50-mark and moving towards the overbought zone, confirming increasing buying momentum.
Positive Price Action: The overall structure suggests accumulation at lower levels, and the current breakout could initiate the next leg of the uptrend.
Favorable Risk-Reward: The setup offers a compelling risk-reward profile for a short-term trade, with significant upside potential compared to the defined stop-loss.
Key Risk: A failure to sustain above the ₹880 level or a close below the ₹860 stop-loss would invalidate the bullish view and could lead to renewed selling pressure.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.