Dhanuka Agritech, a probable breakout?
Post making an all-time high of Rs 929.80 in May 2017, it had a free fall and moved down to create a low of Rs 275 in March 2020. However, after creating the low in just a matter of five months, it went on to create an all-time high of Rs 935.70. Further, it started consolidating to create a descending triangle pattern and gave a breakout on December 28, 2020.
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Key takeaways:
1. Probable descending triangle breakout price chart pattern on the weekly and the daily charts.
2. Medium-term breakout traders can add this stock to their watchlist.
3. Support is placed at Rs 675 and immediate resistance is at Rs 840 levels.
4. Also, on the weekly charts, there is a supply zone above Rs 840 levels that ranges between Rs 870 and Rs 940 levels.
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The above chart is a weekly chart of Dhanuka Agritech and the last candle, which broke out of the descending triangle pattern, would complete on January 01, 2021. However, the same breakout can be witnessed on the daily charts as well.
As we can see, there is a similar price chart pattern even on the daily charts. Also, if you look at its volumes, then that has also been elevated. Hence, here, aggressive breakout swing trading looks promising. The pullback traders can certainly wait for a pullback before entering the trade. Further, breakout traders can enter in for medium-term swing trades if the weekly closing is above the descending triangle pattern.
Disclaimer:
This article is just for understanding purposes and should not be considered as a recommendation. Readers are advised to do their own research before making any investment decision. Further, DSIJ and its authors are not responsible for any kind of losses caused.