HAL: fake breakdown and a possible bullish move.Stock: Hindustan Aeronautics Ltd NSE:HAL
• Timeframe: 1-day candles (each candle represents one day of trading)
1. Consolidation Zone: A grey rectangular box highlights an area of "consolidation" starting from around May 14th. This means the stock price has been trading sideways within a relatively narrow range, not showing a clear uptrend or downtrend.
2. Fake Breakdown: An arrow points to a price dip below the lower boundary of the consolidation zone. The annotation calls this a "fake breakdown." This implies that the price temporarily moved below the support level, but then quickly bounced back up.
3. Potential Trade Setup: The chart suggests a potential long (buy) trade based on the fake breakdown and the subsequent recovery.
• Entry Point: Around 4,897.55 (labeled "ENTRY" on the chart) which is the price at which the stock could be bought.
• Stop Loss: Around 4,733.75 (likely intended to be the "4733.60")
This is the level below which the trader would exit the position to limit potential losses if the price moves against them.
• Targets: The chart identifies three potential profit targets:
* Target 1: 5,087.85
* Target 2: 5,305.15
* Target 3: 5,497.80
