VEDLNSE:VEDL
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VEDL trade ideas
VEDANTA LTD 1:4 PRICE ACTION SETUPNSE:VEDL broke out from a symmetrical triangle pattern after consolidating in it for 4 months.
Bullish signs:
Good breakout volume.
Very few wide range red candles inside the pattern.
Recent support from 30 week EMA.
Strong demand at the trendline indicates the possibility of price going higher.
Scrip has already given a 140% returns in the last year.
Wick on the breakout candle suggest there can be some consolidation before the momentum is released.
One can take a swing trade with a tight stoploss and aim for a 1:4 risk reward setup.
BEWARE, THE PROBABILITY OF THIS TRADE BEING SUCCESFULL IS ENITRELY DEPENDANT ON THE TREND OF NIFTY. IF NIFTY CONTINUES TO BE BEARISH, THE STOP LOSS WILL BE HIT WHETHER IT BE A TIGHT ONE OR A DEEP ONE.
One can just keep this stock on their watchlist instead of entering on the close.
Targets: 400/430/470+
Place tight sl below 330
Position size accordingly if an entry is taken. HAPPY TRADING!
Bullish symmetrical triangle pattern Vedanta 16 jan 22
A symmetrical triangle chart pattern represents a period of consolidation before the price is forced to breakout or breakdown. A breakdown from the lower trendline marks the start of a new bearish trend, while a breakout from the upper trendline indicates the start of a new bullish trend.
Symmetrical triangle formation
If closes above 350 then
CMP 336
T1 360
T2 370
T3 385
T4 440
For Education purposes only
vedlNSE:VEDL
Please note that we are not a SEBI Registered Investor Adviser/PMS/ Broking House.
All the contents over here are for educational purposes only and are not investment advice or recommendations
offered to any person(s) with respect to the purchase or sale of the stocks / futures and options.
You are also requested to apply your prudence and consult your advisers in case you choose to act on
any such content available as WE claims no responsibilities for any of your actions or any outcome of
such action
VEDL is looking bullish for swing tradeThere is a symmetrical triangle pattern formation in VEDL. It is creating higher lows from the bottom and lower highs from the top. Previously also it created the same pattern and gave a huge up move after the break of it. So, we can enter this stock at 336 and put our stop loss below the trendline. The point here to note is that we are entering the trade before the breakout as we are getting a good risk to reward opportunity. We can square off half our quantity as the price reaches the above trendline and trail our stop loss. And if the breakout happens then we can add more quantity.