JSW Steel – Strong Setup but Manage Risk

🔹 Trend: The stock is in a strong uptrend, forming Higher Highs & Higher Lows (HH-HL) on the long-term charts. Trading inside a well-respected ascending channel 📊.
🔹 Moving Averages: Trading above key DMAs, indicating strength.
🔹 Volume: Increasing, a positive sign 📈.
🔹 Sector Strength: The Metal Index is showing early signs of leadership, trading above the 50 & 200 DMA, while most indices are still below 200 DMA.
🔹Forming a Cup and Handle pattern.

🔍 Technical Setup & Strategy
🚀 Breakout above ₹1,061 – Watch for volume confirmation before entering.
📌 Entry Levels: Above ₹1,061.
📌 Stop Loss (SL): ₹879 (Closing Basis).
📌 Positional Target: ₹1,290.
⚠️ Risk: 17% – Position sizing is critical!
📈 Risk:Reward (R:R) – 1:1.35 (Could improve if adding at better levels).

🛑 Risk Management & Caution
⚠️ Avoid going all-in at once! Stocks often pull back to the channel bottom before continuing up.
⚠️ Potential Bull Trap? The overall market remains weak; this could be a counter-trend movement. Stay cautious.
⚠️ Confirmation Matters! If the stock retests the channel bottom & reverses strongly, that’s a great entry opportunity.

🔎 Observations
✅ JSW Steel held up well in the correction, dropping less than 18% – showing resilience 💪.
✅ Metals are cyclical – be patient with entries and buy in phases 📊.

💡 Final Thought: Strong setup, but risk control is key! Breakout traders can enter above ₹1,061 with volume, while pullback traders can wait for a retest near the channel bottom.

📜 Disclaimer: This is for educational purposes only. Not financial advice. Always do your own research and manage risk accordingly! 🚀📉