Libas - Potential Bullish Divergence in Descending Triangle

2024년 7월 21일

Libas Designs Ltd. is currently trading within a descending triangle pattern. A potential bullish divergence between the price action and the RSI could indicate an upcoming trend reversal.

Technical Analysis:

• Descending Triangle Pattern: The stock has been consolidating within a descending triangle pattern, characterized by lower highs and a strong support level around ₹16.5.
  
• Lower Low in Price: The price recently made a lower low, near the support level of the triangle.
  
• Higher Low in RSI: Simultaneously, the RSI (14) made a higher low, creating a bullish divergence. This suggests that the selling pressure is weakening, despite the price making a new low.
  
• Volume Analysis: Volume has been decreasing during the formation of the triangle, which is typical for this pattern and indicates a potential buildup before a breakout.
  

Trade Setup:

• Entry Point: I would wait for a breakout and retest above the top trendline. Probably somewhere above the 17.5 mark.
  
• Stop Loss: A stop loss below ₹16.00, just under the recent support level, to manage risk effectively.
  

Disclaimer: This analysis is for educational purposes and should not be considered financial advice.

2024년 7월 22일

노트

Price closed above the trendline today.

2024년 7월 25일

노트

Looks like the Re-test is complete. Let's see over the coming days.

Disclosure: Invested

2024년 9월 7일

노트

>20% up as of now.