IndoBorax - Fibonacci Targets in sight after Breakout - Daily

16 Jul

Indo Borax & Chemical Ltd. has recently broken out cleanly from a descending trendline. The Fibonacci retracement levels provide clear targets for the upcoming price action, making this an interesting setup.

Technical Analysis:

• Descending Trendline Breakout: The stock has decisively broken out from a descending trendline, indicating a shift in momentum from bearish to bullish.
  
• Fibonacci Retracement Levels: The Fibonacci retracement levels drawn from the recent high to the low indicate potential resistance and support levels. Key observations include:
  
• Support at Fib 1: The price took support at the 1.0 Fibonacci level (₹171.10) post-breakout and bounced off strongly.
  
• Resistance at 2.618: The stock faced resistance at the 2.618 Fibonacci level (₹213.59) but has since taken support at the 1.618 level (₹187.33).
  
• Potential Target Levels: A daily close above ₹213.59 opens up the 3.618 level (₹239.86), with the previous high acting as another target at ₹232.21.
  
• Volume Analysis: The breakout was accompanied by a significant increase in volume. The Volume has spiked again today.
  
  Key Levels to Watch:
  
• Support: ₹171.10 (1.0 Fibonacci level) and ₹187.33 (1.618 Fibonacci level).
  
• Resistance: ₹213.59 (2.618 Fibonacci level) and ₹232.21 (previous high).
  
  Bullish Divergence on Weekly
  
  On the Weekly chart, you will also notice that there has been a Bullish Divergence where the price made a Lower Low, while RSI made a Higher Low, shortly before the Breakout.
  
  The RSI seems to be on an upward trajectory since, as you can see in the chart below.
  
  
  
  Let me know your thoughts in the comments. Please do Boost and Follow for more analyses!
  
  
  
  Disclaimer: This analysis is for educational purposes and should not be considered financial advice.
  

25 Jul

Catatan

Price looks to have taken support at the 1.618 level.

7 Sep

Catatan

2.618 level achieved. Possibly can make one more higher high.