Breakdown of the Setup:
The price action shows a clear ascending triangle formation, with multiple tests of resistance at 5,725.75, creating a natural tension between buyers and sellers. The recent breakout above this level confirms the pattern’s completion, and we’re already seeing follow-through.
The measured move from the breakout gives us an upside target near 6,400, aligning perfectly with R3 from the pivot points, reinforcing the projection.
Pivot Points
The pivot point structure further strengthens the trade setup. The price has successfully broken through P (5,679.50) and is now approaching R1 (5,964.75). A clean break above R1 will likely accelerate the price toward R2 (6,115.50) and R3 (6,400.75).
Given that we’ve already moved past the central pivot pivot, the price trajectory should continue higher unless there’s a sharp reversal.
Risk Management and Stop Levels
Logical stop placements would be just below the breakout level of 5,725.75, which now acts as strong support. For those managing larger positions or tighter risk, S1 (5,528.75) can be considered a deeper level to trail stops or re-enter on a pullback.
Trade Setup
Bullish Case (High Probability):
- Entry: Look for a pullback to around 5,679.50 (Pivot) or close to the trendline for an entry point. This would provide a favorable risk-to-reward setup.
- Targets:
- First Target (R1): 5,964.75
- Second Target (R2): 6,115.50
- Extended Target (R3): 6,400.75
- Stop-Loss: Set a stop-loss below the trendline support, ideally around 5,528.75 (S1) to minimize downside risk.
Bearish Case (Less Likely but Consideration):
- If the price fails to hold above the 5,679.50 pivot and breaks back below the trendline, the momentum could shift to bearish.
- Entry: Consider shorting only if the price decisively breaks below S1 (5,528.75).
- Targets:
- First target would be S2 (5,243.50).
- Extended target would be S3 (5,092.75).
- Stop-Loss: Place a stop above the previous resistance level or trendline, depending on the strength of the breakdown.
Final Call
- Short-Term Outlook: Bullish, with the breakout from the ascending triangle pointing to a potential move toward R1 (5,964.75).
- Medium-Term Outlook: If momentum continues, a further rally toward R2 (6,115.50) is plausible.
- Long-Term Outlook: Should the market rally aggressively, there is potential for a test of the R3 (6,400.75) level.
