JK Lakshmi Cements: It could break either way. Be prepared.
Key Zones
Supply Zone (Resistance) represented by the Red Box.
The price has shown a clear rejection in this zone multiple times, indicating strong selling pressure.
Demand Zone (Support) represented by the Green Box.
Historically, this zone has acted as a strong support, suggesting buying interest in this area.
Patterns and Trendlines
RSI (Relative Strength Index): Current RSI is around 40.73, suggesting the stock is approaching the oversold territory, but not quite there yet.
Key Levels to Watch
Resistance: 875 - 900 INR (Supply Zone)
Support: 675 - 725 INR (Demand Zone)
Intermediate Support: 723.10 INR
Possible Scenarios
Bullish Scenario:
If the price breaks above the descending triangle's upper trendline, it could challenge the supply zone around 875-900 INR.
Confirmation would require a strong breakout with high volume.
Bearish Scenario:
A breakdown below the descending triangle’s lower trendline and the support at 775 INR could lead to a drop towards the demand zone around 675-725 INR.
The gap fill mentioned in the chart could be a target area in the event of a breakdown.
Conclusion
The chart shows JK Lakshmi Cement at a crucial juncture within a descending triangle pattern.
Watch for a breakout above the triangle for a bullish move towards the supply zone.
Alternatively, a breakdown below the current support could lead to further downside, targeting the demand zone and potential gap fill area.
Monitoring volume and RSI will be key in confirming any breakout or breakdown.
Overall, traders should keep an eye on these critical levels and patterns to make informed decisions.
DISCLAIMER: EDUCATION PURPOSES ONLY. NOT FINANCIAL ADVICE.
Supply Zone (Resistance) represented by the Red Box.
The price has shown a clear rejection in this zone multiple times, indicating strong selling pressure.
Demand Zone (Support) represented by the Green Box.
Historically, this zone has acted as a strong support, suggesting buying interest in this area.
Patterns and Trendlines
RSI (Relative Strength Index): Current RSI is around 40.73, suggesting the stock is approaching the oversold territory, but not quite there yet.
Key Levels to Watch
Resistance: 875 - 900 INR (Supply Zone)
Support: 675 - 725 INR (Demand Zone)
Intermediate Support: 723.10 INR
Possible Scenarios
Bullish Scenario:
If the price breaks above the descending triangle's upper trendline, it could challenge the supply zone around 875-900 INR.
Confirmation would require a strong breakout with high volume.
Bearish Scenario:
A breakdown below the descending triangle’s lower trendline and the support at 775 INR could lead to a drop towards the demand zone around 675-725 INR.
The gap fill mentioned in the chart could be a target area in the event of a breakdown.
Conclusion
The chart shows JK Lakshmi Cement at a crucial juncture within a descending triangle pattern.
Watch for a breakout above the triangle for a bullish move towards the supply zone.
Alternatively, a breakdown below the current support could lead to further downside, targeting the demand zone and potential gap fill area.
Monitoring volume and RSI will be key in confirming any breakout or breakdown.
Overall, traders should keep an eye on these critical levels and patterns to make informed decisions.
DISCLAIMER: EDUCATION PURPOSES ONLY. NOT FINANCIAL ADVICE.