Hindustan Zinc Time to Buy???
Hindustan Zinc (HINDZINC) Analysis 🚀
After a Stage 2 breakout from ₹410 levels, the stock skyrocketed to ₹810, delivering a remarkable 100% return within a month. However, it has now retraced to its previous breakout zone of ₹410-₹415, signaling a potential Stage 4 decline.
Currently, the stock is trading near the previous breakout zone, and two scenarios are in play:
Scenario 1: Potential Double Bottom/W Pattern Formation
If the stock forms a Double Bottom/W pattern and breaks out of the trendline, it could turn into a promising swing trade candidate.
Targets:
Stop Loss: ₹410 (-16%)
💡 Why watch this scenario?
The Risk-Reward ratio is favorable, and the breakout could indicate strength. If you feel compelled to trade, adding small quantities around the previous breakout levels of ₹410 could be a safer bet. Add only Test Quantities.
Scenario 2: Breakdown Below ₹411
If the stock breaks below ₹411, it could re-enter the previous breakout base, with potential downside targets of ₹350-₹325. In this case, shorting opportunities might arise, but only if market sentiment aligns.
Technical Overview 🔍
Fundamentals 🧐
Hindustan Zinc recently posted decent quarterly results, but the broader market trend and technicals should guide your decisions here.
Risks & Sugestions ⚠️
Risk Management: With a 16% risk on SL, position sizing is crucial. Avoid committing big capital without proper confirmation.
Market Context: Be wary of overall market trends, as the broader market is still weak.
Emotional Trading: Don’t get tempted by sudden spikes in the market. Always wait for confirmation.
👉 Pro Tip: Missing an opportunity is better than burning your capital. Start small to gauge strength before scaling your position.
Educational Takeaway ✍️
This stock offers a good learning opportunity for breakout and retracement patterns. Add it to your watchlist but focus on risk management and position sizing.
Disclaimer: This analysis is for educational purposes only. Consult your financial advisor before making any investment decisions.
After a Stage 2 breakout from ₹410 levels, the stock skyrocketed to ₹810, delivering a remarkable 100% return within a month. However, it has now retraced to its previous breakout zone of ₹410-₹415, signaling a potential Stage 4 decline.
Currently, the stock is trading near the previous breakout zone, and two scenarios are in play:
Scenario 1: Potential Double Bottom/W Pattern Formation
If the stock forms a Double Bottom/W pattern and breaks out of the trendline, it could turn into a promising swing trade candidate.
Targets:
- T1: ₹575 (+19.5%, RR 1:1.23)
- T2: ₹716 (+48%, RR 1:3)
- T3: ₹810 (ATH, +68%, RR 1:4)
Stop Loss: ₹410 (-16%)
💡 Why watch this scenario?
The Risk-Reward ratio is favorable, and the breakout could indicate strength. If you feel compelled to trade, adding small quantities around the previous breakout levels of ₹410 could be a safer bet. Add only Test Quantities.
Scenario 2: Breakdown Below ₹411
If the stock breaks below ₹411, it could re-enter the previous breakout base, with potential downside targets of ₹350-₹325. In this case, shorting opportunities might arise, but only if market sentiment aligns.
Technical Overview 🔍
- The stock is trading well below all key DMAs, indicating weakness.
- The Lower High-Lower Low (LH-LL) structure is intact with no signs of reversal yet.
- Overall market trend: LH-LL and trading below the 200 DMA. Any bounce could just be a natural pullback.
Fundamentals 🧐
Hindustan Zinc recently posted decent quarterly results, but the broader market trend and technicals should guide your decisions here.
Risks & Sugestions ⚠️
Risk Management: With a 16% risk on SL, position sizing is crucial. Avoid committing big capital without proper confirmation.
Market Context: Be wary of overall market trends, as the broader market is still weak.
Emotional Trading: Don’t get tempted by sudden spikes in the market. Always wait for confirmation.
👉 Pro Tip: Missing an opportunity is better than burning your capital. Start small to gauge strength before scaling your position.
Educational Takeaway ✍️
This stock offers a good learning opportunity for breakout and retracement patterns. Add it to your watchlist but focus on risk management and position sizing.
Disclaimer: This analysis is for educational purposes only. Consult your financial advisor before making any investment decisions.
İlgili yayınlar
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.