CAMS – Rounding Bottom Breakout | Momentum Play

6 Haz

Structure:
CAMS has completed a classic rounding bottom formation over the past three months, with the neckline placed around ₹4,200. Price action from the March 2025 lows (~₹3,100) has remained within a well-defined ascending channel, signaling steady accumulation and controlled institutional entry.

On June 5, 2025, the stock gave a clean breakout above ₹4,200 with a strong bullish candle, closing at ₹4,248.30. Importantly, the move came with a volume of 877.56K, significantly higher than the 20-day average (576K), validating the breakout strength.

Momentum indicators are supportive — RSI has now crossed 70, confirming entry into bullish momentum territory without showing divergence or exhaustion yet.

Breakout Snapshot:

• Pattern: Rounding Bottom + Ascending Channel
  
• Breakout Level: ₹4,200
  
• Entry: ₹4,248.30 (EOD Jun 5, 2025)
  
• Volume: 877.56K vs 20-SMA 576K
  
• RSI: 70.11 → strong bullish confirmation
  

🎯 Target: ₹5,120
📉 Stop-Loss: ₹4,000 (below breakout and channel support)
📈 Potential Upside: ~20%
⚖️ Risk-Reward: ~3.6x

Why It Matters:
CAMS has historically respected multi-month consolidations and offers clean post-breakout runs when supported by volume. This setup reflects a transition from accumulation to trend. The ascending structure indicates that smart money entered gradually — now validated with the breakout and volume spike.

Not a call to chase — idea is based on price-volume confirmation after a long base formation. Ideal entries are either near breakout (done) or on retest toward ₹4,180–₹4,200.

Track These:

• ₹4,400: Minor resistance
  
• ₹5,120: Measured move target
  
• ₹4,000: Invalidation zone
  
• RSI > 75: Overheat caution
  

Disclaimer:
This analysis is for educational and informational purposes only. It does not constitute investment advice or a recommendation to buy or sell any security. Please consult your financial advisor before making any trading decisions.

3 gün önce

Not

📉 Update (Jun 14, 2025): Breakout Failed – Exit Triggered

Despite a strong breakout above ₹4,200 on volume (Jun 5), the price has since broken below key support levels, including:

Ascending channel support

Breakout zone at ₹4,114

Multiple daily closes below structure

The EOD close on Jun 14 at ₹3,980 confirms a failed breakout with breakdown in both momentum (RSI < 50) and price structure.

🔴 Trade Invalidated
⛔ Exit Position if Still Holding – original thesis no longer holds
📉 CAMS reverts to watchlist until a fresh base and reclaim of ₹4,200+

This update reflects a disciplined closure of a failed trade, not a view on business fundamentals.

3 gün önce

İşlem kapandı: durdurma seviyesi