Are you looking for a potential swing trade with significant upside? We’ve got an exciting opportunity with Cera Sanitaryware that’s worth keeping on your radar. This could be a golden moment to enter, but let’s break it down carefully so you’re ready to take action when the time comes!
Why CERA Sanitaryware?
Looking at Cera Sanitaryware’s daily chart, we can see that the stock has reached a crucial support level where it has bounced several times in the past. This makes it a high-probability area where something significant might happen. In technical analysis, history often repeats itself, and we could be seeing the beginning of a big move here!
Additionally, the stock is currently hovering around the 200 EMA (Exponential Moving Average). This is a well-known area for value buying. The 200 EMA is often viewed as a key support or resistance zone, and many institutional traders keep an eye on it, giving you more reason to focus here.
The RSI (Relative Strength Index) is another indicator suggesting a potential reversal. It has just touched the 30 level, signaling that the stock is in an oversold territory. In many cases, this can trigger buying pressure, as traders view it as a bargain at current levels.
What’s Happening on the Hourly Chart?
Moving to the hourly chart, the situation gets even more interesting! We can clearly spot an Inverse Head and Shoulders pattern, which is a classic reversal setup. If this pattern gets confirmed and we see an hourly candle close above ₹8,350, it’s a strong sign that the reversal is in full swing. This is where you can consider entering a long position in CERA.
Trade Plan & Strategy
Before jumping into the trade, patience is key! We’ll only go long if the pattern breaks, and we get confirmation with an hourly close above ₹8,350. If this happens, we can place our stop loss around ₹8,050 to protect our position.
This is a reversal trade, so we can aim for a big target, given the stock’s potential for a strong comeback. The target can be set at the recent high from which the stock fell, which is around ₹10,750. A solid risk-to-reward ratio can make this a lucrative opportunity.
Key Points:
- Wait for the break: Hourly candle close above ₹8,350.
- Stop Loss: Around ₹8,050.
- Target: ₹10,750, aiming for the recent high.
Disclaimer:
This analysis is for educational purposes only and is not financial advice. Stock markets carry inherent risks, and there are no guarantees of profit. Please consult your financial advisor before making any investment decisions.
With the setup explained, it’s time to keep a close watch on the Cera Sanitaryware share price and act once the breakout occurs. If everything aligns, this could be a fantastic long swing trade!
Good luck, and trade smart!