SYNGENE: A Confluence of Demand Zones Worth Watching

6 hari yang lalu

Understanding the market moves through the lens of demand and supply zones can give traders a critical edge. I’ve been looking at SynGene International ( SYNGENE ), and I think it’s at a super interesting level right now. Let me break it down for you in a simple way!

📈 Why SynGene Looks Promising Right Now

• Triple Timeframe Demand Zone Confluence: SYNGENE is trading in demand zones across the 75-minute, 125-minute, and daily timeframes. This rare alignment of zones suggests that "smart money" may be active here. Demand zones represent areas where unfilled buy orders are likely to exist, making this confluence a highly positive factor for demand-supply zone traders.
  
• Absence of Supply Zones: No supply zones are visible on the current timeframes or even on the weekly chart. This indicates that price movement may face minimal resistance ahead. The absence of supply zones on the higher timeframe (weekly) places the stock in a "wholesale area" as per Curve (location) analysis.
  
• Quality Demand Zone : The demand zones currently in play were instrumental in driving the price to an all-time high in the past. These zones follow-through candles broken multiple tested resistance levels, demonstrating their strength.
  
• Act of Polarity: While the price is not precisely in the demand zone right now, it is trading at a level that previously acted as resistance. This "act of polarity" (where resistance becomes support) adds another layer of technical validity to this setup.
  
• Uptrend on Higher Timeframe: The higher timeframe trend for SynGene remains upward, aligning well with the idea of buying on demand zones.
  

🎯 Key Trading Considerations
- Entry Strategy: Look for entry opportunities near the demand zone, ensuring your stop-loss (SL) is placed below the distal line of the demand zone with a buffer.
- Risk Management: Aim for a minimum 1:2 risk-reward ratio for your first target. If the price moves further upward, consider trailing your stop-loss to capture extended rallies.
- Safety is Key: While the setup is promising, remember that no setup is foolproof. Discipline with stop-losses.

Lastly, thank you for your support. Feel free to ask if you have any questions.

📢 Disclaimer: This analysis is purely for educational purposes and is not intended as a trading or investment recommendation. Please note, I am not a SEBI-registered analyst. Always consult with a financial professional before making trading or investment decisions.

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Last Friday, after market hours, I shared an analysis highlighting a strong confluence of demand zones in SynGene International across multiple timeframes (75-min, 125-min, and daily). However, on Monday, the stock opened with a gap down due to news that Biocon might sell a 2% stake via block deals. This gap down broke all three demand zones, leaving no opportunity to buy at those levels.

📊 What Happened Next?
Later on Monday, the price dropped straight into the next daily demand zone—a critical level where Smart Money had initiated a strong move in the past. This zone absorbed heavy selling pressure and triggered a remarkable 7% rally within the next two days.

📈 Key Takeaways

• No Chance at Initial Zones: The gap down breached the earlier demand zones before any buying opportunity could arise.
  
• Next Zone Delivered: The daily demand zone held firm and provided a chance to buy at a cheaper price.
  
• Smart Money Speaks: This rally highlights the power of quality zones, even amidst heavy selling news.
  

🚀 "The market respects levels that matter—trust the charts, not the noise!" 🚀

Feel free to share your thoughts below!