Godrej Consumer Ltd

#stocks #investing #trading #trade #invest #swingtrade #bullish

Key Observations:

1. W-Pattern Formation (Hourly Timeframe): The stock is forming a bullish “W” pattern, which typically signals a potential trend reversal, indicating possible upward movement in the short term.
2. Bullish Divergence in MACD: A bullish divergence in the MACD indicates that momentum is strengthening despite previous price weakness, further supporting a potential uptrend.
3. Trendline Breakout with Rising Volume: The stock has broken out from a falling trendline with rising volume, which confirms buying strength and suggests a reversal of the prior downtrend.
4. Support at 200 EMA (₹1,314): On the daily chart, the stock has taken support and bounced from the 200-day EMA, a strong indicator of long-term support and potential upside continuation.
5. Resistance Levels: Key resistance levels are seen at ₹1,360 and ₹1,410. A breakout above these levels could lead to further price appreciation.

Trading Strategy:

• Bullish Outlook: The combination of the W-pattern, MACD divergence, and breakout above the trendline indicates a favorable bullish setup.
• Resistance Levels: Monitor price action near the ₹1,360 and ₹1,410 resistance zones for potential breakouts or pullbacks.
• Risk Management: The 200-day EMA at ₹1,314 serves as a crucial support level. A close below this level could signal a change in trend, so managing risk with a stop-loss near this level is recommended.