BABAFOOD - rounding bottom pattern

Trade Setup:
Entry Point:

Enter the trade now at the current market price (CMP) of ₹58.40.
This entry anticipates the completion of the handle formation, aiming for a breakout toward the cup’s resistance.
Stop Loss:

Place the stop loss below the recent swing low or the horizontal support level.
Recommended stop loss: ₹50.00 (below the recent consolidation area and strong support).
Target Price:

First target: The cup's all-time high level near ₹76.90 (the top of the cup).
Second target: A potential breakout above ₹76.90. Use the measured move method:
Height of the cup = ₹76.90 - ₹58.40 = ₹18.50.
Add this to the breakout level: ₹76.90 + ₹18.50 = ₹95.40.
Risk-Reward Calculation:

Entry: ₹58.40
Stop Loss: ₹50.00 (Risk = ₹58.40 - ₹50.00 = ₹8.40)
Target 1: ₹76.90 (Reward = ₹76.90 - ₹58.40 = ₹18.50)
Target 2: ₹95.40 (Extended Reward = ₹95.40 - ₹58.40 = ₹37.00)
Risk-Reward Ratios:

Target 1: 1:2.2
Target 2: 1:4.4
Volume Confirmation:

Watch for an increase in volume as the price approaches the ₹76.90 level for confirmation of strength.
Position Sizing:

Ensure your position size is adjusted so that your potential loss is limited to 1-2% of your trading capital in case the stop loss is hit.
Summary:
Entry: At CMP ₹58.40
Stop Loss: ₹50.00
Target 1: ₹76.90 (All-time high and top of the cup)
Target 2: ₹95.40 (Measured move after a breakout)
Risk-Reward Ratio: 1:2.2 for the first target and 1:4.4 for the second target