Kamat Hotels - Bullish Breakout with Massive Volume
Kamat Hotels - Bullish Breakout with Massive Volume 🚀
📊 Timeframe: Daily
Trade Setup
🔹 Entry Level: ₹273.20
🔹 Stop Loss (SL): ₹226.11 (~17.23% below entry)
🔹 Target Levels:
T1 (Pivot High of April 2024): ₹315.45 (+15.46%) 🟢
T2 (Positional Target - ATH): ₹374.00 (+36.93%) 🏆
Risk-to-Reward Ratio (R:R):
R:R for T1: 0.89
R:R for T2: 2.14
Technical Highlights
🔥 Volume Spike:
Breakout supported by 4-5x higher volumes than recent sessions. Volume is the key reason for this suggestion.
📈 Price Journey:
The stock started its upward journey in March 2020, slowly rising while trading inside a channel.
Made a peak (ATH) in January 2024, followed by a sharp fall.
After the fall, the stock formed a base and consolidated, leading to the current breakout.
📈 Resistance Levels:
Immediate Resistance: ₹292.45 (Pivot High from May 2024 – 8 months ago).
Target 1: ₹315.45 (April 2024 Pivot High).
🌟 Candle Analysis:
Strong, clean candle with no upper shadow, showing bullish strength.
📊 Trend Consideration:
While technically bullish, keep in mind this is against the broader trend, which increases the risk of failure.
💡 Pyramiding Opportunity:
Consider adding positions gradually (pyramiding) on follow-through price action.
Fundamental Perspective
⚠️ Fundamentals: Nothing extraordinary here; this is purely a technical trade driven by a volume-backed breakout.
Actionable Advice & Risks
🔍 Wait and Watch:
Look for follow-through price action before committing significant capital.
⚡ Sharp Retracement Risk:
Breakouts can often retrace sharply, especially against the trend. Consider adding only small quantities or trade according to your risk appetite.
❗ Trend Risk:
2 out of 3 trades fail if the market sentiment turns bearish, so trade cautiously when going against the prevailing trend.
Disclaimer
This idea is for educational purposes only and is not financial advice. Please consult your financial advisor and trade according to your risk tolerance.
Summary:
The stock shows a technically strong breakout, supported by massive volume, and has been gradually rising since March 2020, trading inside a channel. It made an ATH in January 2024, followed by a sharp fall, formed a base, and consolidated before breaking out. Immediate resistance lies at ₹292.45, followed by T1 at ₹315.45, and positional traders can aim for the ATH of ₹374. While fundamentals are not strong, the volume-backed breakout and clean price action make this a compelling technical setup. Be cautious of retracements and manage your risk effectively.
📊 Timeframe: Daily
Trade Setup
🔹 Entry Level: ₹273.20
🔹 Stop Loss (SL): ₹226.11 (~17.23% below entry)
🔹 Target Levels:
T1 (Pivot High of April 2024): ₹315.45 (+15.46%) 🟢
T2 (Positional Target - ATH): ₹374.00 (+36.93%) 🏆
Risk-to-Reward Ratio (R:R):
R:R for T1: 0.89
R:R for T2: 2.14
Technical Highlights
🔥 Volume Spike:
Breakout supported by 4-5x higher volumes than recent sessions. Volume is the key reason for this suggestion.
📈 Price Journey:
The stock started its upward journey in March 2020, slowly rising while trading inside a channel.
Made a peak (ATH) in January 2024, followed by a sharp fall.
After the fall, the stock formed a base and consolidated, leading to the current breakout.
📈 Resistance Levels:
Immediate Resistance: ₹292.45 (Pivot High from May 2024 – 8 months ago).
Target 1: ₹315.45 (April 2024 Pivot High).
🌟 Candle Analysis:
Strong, clean candle with no upper shadow, showing bullish strength.
📊 Trend Consideration:
While technically bullish, keep in mind this is against the broader trend, which increases the risk of failure.
💡 Pyramiding Opportunity:
Consider adding positions gradually (pyramiding) on follow-through price action.
Fundamental Perspective
⚠️ Fundamentals: Nothing extraordinary here; this is purely a technical trade driven by a volume-backed breakout.
Actionable Advice & Risks
🔍 Wait and Watch:
Look for follow-through price action before committing significant capital.
⚡ Sharp Retracement Risk:
Breakouts can often retrace sharply, especially against the trend. Consider adding only small quantities or trade according to your risk appetite.
❗ Trend Risk:
2 out of 3 trades fail if the market sentiment turns bearish, so trade cautiously when going against the prevailing trend.
Disclaimer
This idea is for educational purposes only and is not financial advice. Please consult your financial advisor and trade according to your risk tolerance.
Summary:
The stock shows a technically strong breakout, supported by massive volume, and has been gradually rising since March 2020, trading inside a channel. It made an ATH in January 2024, followed by a sharp fall, formed a base, and consolidated before breaking out. Immediate resistance lies at ₹292.45, followed by T1 at ₹315.45, and positional traders can aim for the ATH of ₹374. While fundamentals are not strong, the volume-backed breakout and clean price action make this a compelling technical setup. Be cautious of retracements and manage your risk effectively.
Uwaga
Huge gap up and rejecting from T1. Wait for a retest or wait for a close above T1 for fresh entry. 
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