DCMSHRIRAM, has been facing strong resistance at the 910-920 level since November 2022. Interestingly, the 910 level has been acting as both support and resistance since June 2021. Today, we witnessed a breakthrough of the 910-920 level with a significant surge in volume. This breakout occurred on the weekly and daily charts, making it a crucial development to consider.
📊 Technical Analysis📈
Plan buy trade near closing of market if breakout sustains above resistance
DCMSHRIRAM has been consolidating within the 910-920 range for several months, indicating a period of indecision and lack of clear direction in the stock's price movement.
The 910 level has proved to be a significant support and resistance zone in the past, highlighting its importance in determining the stock's future trajectory.
Today, we observed a breakout above the 910-920 range with an extraordinary surge in volume, suggesting strong buying interest and a potential shift in market sentiment.
The breakout on both the weekly and daily charts strengthens the bullish case for DCMSHRIRAM, as it indicates a potential trend reversal and the beginning of a new upward movement.
📊 Technical Terms📈
Before delving further into the analysis, let's clarify some technical terms for those new to trading:
1. Resistance Level: A price level at which selling pressure is historically strong, causing the stock's price to struggle to rise above it.
2. Support Level: A price level at which buying interest is historically strong, preventing the stock's price from falling below it.
3. Breakout: The movement of a stock's price above a significant resistance level or below a significant support level, indicating a potential change in the stock's trend.
4. Volume: The number of shares or contracts traded in a security or market during a given period. High volume often indicates increased market activity and can confirm the strength of a price move.
👍📝 Like, Comment, and Follow 👍📝
If you found this analysis helpful, don't forget to give it a thumbs up! Feel free to share your observations in the comments section below. Your feedback and engagement are highly appreciated as they keep me motivated to consistently provide educational content.
Thank you for your support, likes, follows, and comments. It means a lot to me! If you want to stay updated with more articles and trade setups, make sure to follow me on TradingView: in.tradingview.com/u/AfnanTAjuddin/
💪🚀 Trading is not just about making money; it's a journey of self-discovery and personal growth. Embrace the challenges and keep pushing forward! 💪🚀
Remember, this analysis is for educational purposes only, and I am not a SEBI registered analyst. Always conduct thorough research and consult with a certified professional before making any investment decisions. Happy trading!