HCLTech: Riding the Rising Channel

HCLTech: Riding the Rising Channel

HCLTech started its recent upward journey on 3rd October 2022, taking multiple supports on a trendline that later became part of a rising channel.

What is a Rising Channel?
A rising channel, also known as an ascending channel, is a bullish chart pattern characterized by two parallel, upward-sloping trendlines that contain price fluctuations.

1. The lower trendline connects higher lows, acting as support.
   
2. The upper trendline connects higher highs, acting as resistance.
   
3. This pattern indicates an ongoing uptrend, where buyers are in control and prices move steadily higher.
   

What’s in it for Traders/Investors?

• Entry Point: Around ₹1650
  
• Target Price: ₹1950 (We do not wait for the price to touch the upper end of the channel fully)
  
• Time Frame: 6 months
  
• Potential Gain: Approximately 21%
  
• Stop Loss (SL): Strong support at ₹1375
  

Disclaimer

• Always conduct your own analysis before taking any position. Consider your risk-reward ratio.
  
• Do not allocate more than 2%–3% of your trading capital to a single stock.
  
• Review the stock’s performance regularly and take appropriate action if it underperforms.