Technical Analysis: Dishman Carbo
This document provides a technical analysis of Dishman Carbo stock. We examine key price levels, breakout potential, and target projections based on chart patterns and resistance levels. The analysis aims to guide experienced traders in their decision-making process.
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by RA ALOK DAIYA SEBI Reg. INH000011468
Report as on 13th Aug 2024
About Dishman Carbo
Dishman Carbo is a leading pharmaceutical company specializing in the development and manufacturing of active pharmaceutical ingredients (APIs) and specialty chemicals. With a global presence, the company serves a diverse range of clients in the pharmaceutical, agrochemical, and specialty chemical industries.
Current Market Position
Dishman Carbo is currently trading at 196, just above its stop loss level of 193. This indicates a critical juncture for the stock. Traders should monitor this level closely.
The proximity to the stop loss suggests heightened risk. However, it also presents potential for upward movement if support holds.
Breakout Analysis
1
Current Price
CMP at 196, showing potential for upward movement.
2
Breakout Level
Key resistance at 205, acting as the breakout price.
3
Confirmation
Sustained trading above 205 confirms the breakout scenario.
Resistance Breakout Pattern
The stock is exhibiting a resistance breakout pattern on the daily chart. This is a bullish signal, indicating potential for upward price movement.
Breakouts often lead to significant price advances. Traders should watch for increased volume to confirm the breakout's strength.
Target Projections
1
First Target: 217
Initial resistance level, representing a 5.85% gain from the breakout price.
2
Second Target: 224
Intermediate target, offering a 9.27% potential return from the breakout.
3
Third Target: 234
Ambitious target, suggesting a possible 14.15% upside from the breakout point.
Risk Management
The stop loss at 193 serves as a crucial risk management tool. It represents a 1.5% drawdown from the current market price.
Traders should consider adjusting their stop loss as the price advances. This helps lock in gains and manage risk effectively.
Volume Analysis
While not explicitly mentioned, volume is crucial in confirming breakouts. Traders should monitor for increased volume as the price approaches 205.
High volume during a breakout suggests strong buyer interest and increases the likelihood of sustained momentum.
Trading Strategy
1
Entry Strategy
Consider entering on a break above 205 with confirmation from increased volume.
2
Position Sizing
Calculate position size based on the 193 stop loss to manage risk effectively.
3
Profit Taking
Consider partial profit-taking at each target level: 217, 224, and 234.
4
Monitoring
Regularly reassess the trade based on price action and overall market conditions.