CarTrade Tech- CnH FnP. Keep on Radar
📊 CarTrade Tech - Technical Analysis 🚗
Reason for Picking This Stock:
CarTrade Tech has been in an uptrend since March 2023, trading within a rising channel. The stock tends to take support near the 50 DMA and the channel bottom, showcasing strong demand in those areas.
✨ Key Highlights:
1️⃣ Breakout from 3.5-Year Resistance: The stock has broken above a significant 3.5-year-old resistance level of ₹1,622.85 and gave a weekly closing above it.
2️⃣ Chart Patterns:
Cup and Handle (CnH) formation near the 3.5-year resistance.
Flag and Pole (FnP) pattern adds conviction to the breakout.
3️⃣ No Overhead Resistance: The left side of the chart shows no major resistance, providing room for upside movement.
4️⃣ Relative Strength in Market Correction: The stock has held strong during the broader market correction.
🎯 Trading Levels & Risk-Reward (R:R):
Entry: ₹1,835
Stop Loss (Closing Basis): ₹1,514
Positional Target: ₹2,543
SL %: 17.5%
R:R: 1:2
📌 How to Trade:
✅ Wait for Confirmation: A clear breakout with volume and a wide-range candle will strengthen the setup.
✅ Small Position Size: As the market trend is bearish, trade with reduced risk.
✅ Pullback Entry: Look for a pullback to the 50 DMA region or channel bottom for better risk-reward entries.
✅ Add on Base Formation: If the stock consolidates above the breakout level and breaks out again, consider this as a further entry point.
⚠️ Risk Considerations:
🚨 The broader market is trading well below the 50 DMA and 200 DMA, with a death cross in play. Committing large capital at this point may not be advisable.
🚨 This is a pure technical call on a fundamentally weak company. Perform your own due diligence before trading.
💡 Key Points to Watch:
1️⃣ Clear breakout from the Flag and Pole (FnP) and Cup and Handle (CnH) patterns.
2️⃣ The channel top may act as a resistance, so monitor price action near those levels.
3️⃣ Broader market stabilization above the 200 DMA and 50 DMA is crucial for larger capital deployment.
🚦 Final Thoughts:
CarTrade Tech is showing relative strength in a falling market—a key factor for stock selection during corrections. The intention is to highlight opportunities in stocks performing well despite broader market weakness. Trade cautiously and stick to strict risk management. 💪 and do not wait for target to be achieved in this market condition. Try to book partial and trail SL.
📉 Disclaimer: This analysis is for educational purposes only and not financial advice. Always consult your financial advisor before making any trading decisions.
Reason for Picking This Stock:
CarTrade Tech has been in an uptrend since March 2023, trading within a rising channel. The stock tends to take support near the 50 DMA and the channel bottom, showcasing strong demand in those areas.
✨ Key Highlights:
1️⃣ Breakout from 3.5-Year Resistance: The stock has broken above a significant 3.5-year-old resistance level of ₹1,622.85 and gave a weekly closing above it.
2️⃣ Chart Patterns:
Cup and Handle (CnH) formation near the 3.5-year resistance.
Flag and Pole (FnP) pattern adds conviction to the breakout.
3️⃣ No Overhead Resistance: The left side of the chart shows no major resistance, providing room for upside movement.
4️⃣ Relative Strength in Market Correction: The stock has held strong during the broader market correction.
🎯 Trading Levels & Risk-Reward (R:R):
Entry: ₹1,835
Stop Loss (Closing Basis): ₹1,514
Positional Target: ₹2,543
SL %: 17.5%
R:R: 1:2
📌 How to Trade:
✅ Wait for Confirmation: A clear breakout with volume and a wide-range candle will strengthen the setup.
✅ Small Position Size: As the market trend is bearish, trade with reduced risk.
✅ Pullback Entry: Look for a pullback to the 50 DMA region or channel bottom for better risk-reward entries.
✅ Add on Base Formation: If the stock consolidates above the breakout level and breaks out again, consider this as a further entry point.
⚠️ Risk Considerations:
🚨 The broader market is trading well below the 50 DMA and 200 DMA, with a death cross in play. Committing large capital at this point may not be advisable.
🚨 This is a pure technical call on a fundamentally weak company. Perform your own due diligence before trading.
💡 Key Points to Watch:
1️⃣ Clear breakout from the Flag and Pole (FnP) and Cup and Handle (CnH) patterns.
2️⃣ The channel top may act as a resistance, so monitor price action near those levels.
3️⃣ Broader market stabilization above the 200 DMA and 50 DMA is crucial for larger capital deployment.
🚦 Final Thoughts:
CarTrade Tech is showing relative strength in a falling market—a key factor for stock selection during corrections. The intention is to highlight opportunities in stocks performing well despite broader market weakness. Trade cautiously and stick to strict risk management. 💪 and do not wait for target to be achieved in this market condition. Try to book partial and trail SL.
📉 Disclaimer: This analysis is for educational purposes only and not financial advice. Always consult your financial advisor before making any trading decisions.
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