Technical Analysis: Century Plyboards Ltd
This document provides a technical analysis of Century Ply Ltd stock, highlighting key price levels and potential breakout scenarios. We'll examine the stock's current position, stop loss, breakout price, and multiple target levels based on chart patterns.
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by RA ALOK DAIYA SEBI Reg. INH000011468
Report as on 26th Aug 2024 CMP 770
Key Chart Patterns to Watch
Cup with Handle Pattern
Century Ply Ltd's stock is currently approaching a critical juncture. The stock has formed a cup with handle pattern on the daily chart. This pattern is often considered bullish and suggests potential upward movement.
Key Price Levels
Stop Loss
The recommended stop loss is set at 745 on an end-of-day basis. This level provides downside protection for traders entering long positions.
Breakout Price
The breakout price is identified at 780. A move above this level could trigger bullish momentum and attract more buyers.
Target Prices
Multiple target prices have been identified: 800, 848, and 888. These levels represent potential profit-taking zones for traders.
Cup with Handle Pattern
Bullish Continuation Pattern
The cup with handle pattern is a bullish continuation pattern, suggesting potential upward movement.
Key Elements
The pattern consists of a rounded bottom (cup) followed by a slight downward drift (handle), which often represents a period of consolidation before the breakout.
The neckline serves as the key resistance level to watch. Once the price breaks above the neckline, it signals a potential breakout and further upward price movement.
Breakout Strategy
1
Identify Breakout
Watch for a convincing move above the 780 level, preferably with increased volume.
2
Enter Position
Consider entering a long position once the breakout is confirmed.
3
Set Stop Loss
Place a stop loss at 745 to manage risk.
4
Target Profits
Use the identified target levels (800, 848, 888) for potential profit-taking.
Risk Management
Always use proper risk management techniques when trading. The stop loss at 745 should be strictly adhered to on an end-of-day basis.
Consider using trailing stops as the stock moves higher. This can help protect profits while allowing for potential further upside.
Remember that technical analysis is just one tool. Always consider fundamental factors and overall market conditions in your trading decisions.
Disclaimer
This presentation is for educational purposes only. It does not constitute investment advice. Always consult with a financial professional before making any investment decisions.
Past performance is not indicative of future results. Trading involves risk. You could lose money. Use proper risk management techniques and never invest more than you can afford to lose.