Aurobindo Pharma Futures (JAN FUT Contract)
Aurobindo Pharma Futures (JAN FUT Contract):
Pattern Identification:
The chart showcases a Head and Shoulders (H&S) reversal pattern, which typically indicates a potential upward breakout after a downtrend.
Key levels include a breakout above the neckline (yellow trendline), followed by potential targets labeled as TP1 and TP2.
Entry Point:
Enter a long trade upon a confirmed breakout above the neckline.
Ideal entry: Above ₹1,260–1,265 with strong volume confirmation.
Stop-Loss (SL):
Place a stop-loss below the right shoulder or below the head, depending on your risk appetite.
Recommended SL: ₹1,240 (below the recent low to minimize risk).
Target Prices (TP):
TP1: ₹1,291.80 (First target based on prior resistance).
TP2: ₹1,365.40 (Second target based on measured move from the H&S pattern).
Risk-Reward Ratio:
Calculate risk-to-reward before entering the trade. The setup suggests a potential 2:1 or 3:1 risk-reward ratio if executed as planned.
Volume Confirmation:
Ensure that the breakout is accompanied by above-average volume, confirming the strength of the move.
Additional Notes:
Keep an eye on market conditions or external news that might impact pharma stocks.
If the price fails to sustain above ₹1,260, avoid the trade to prevent false breakouts.
Pattern Identification:
The chart showcases a Head and Shoulders (H&S) reversal pattern, which typically indicates a potential upward breakout after a downtrend.
Key levels include a breakout above the neckline (yellow trendline), followed by potential targets labeled as TP1 and TP2.
Entry Point:
Enter a long trade upon a confirmed breakout above the neckline.
Ideal entry: Above ₹1,260–1,265 with strong volume confirmation.
Stop-Loss (SL):
Place a stop-loss below the right shoulder or below the head, depending on your risk appetite.
Recommended SL: ₹1,240 (below the recent low to minimize risk).
Target Prices (TP):
TP1: ₹1,291.80 (First target based on prior resistance).
TP2: ₹1,365.40 (Second target based on measured move from the H&S pattern).
Risk-Reward Ratio:
Calculate risk-to-reward before entering the trade. The setup suggests a potential 2:1 or 3:1 risk-reward ratio if executed as planned.
Volume Confirmation:
Ensure that the breakout is accompanied by above-average volume, confirming the strength of the move.
Additional Notes:
Keep an eye on market conditions or external news that might impact pharma stocks.
If the price fails to sustain above ₹1,260, avoid the trade to prevent false breakouts.
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