Poly Medicure Ltd has caught the market’s attention after decisively breaking out above a long-standing descending trendline on the daily chart — a strong signal that bullish momentum may be taking shape.
Supported by solid price action and encouraging volume, this breakout points to the potential for a sustained move higher. Here’s a detailed look at the trading setup based on the current chart structure:
Trade Setup
- Buy Zone: Around ₹2,534.60 (current market price)
- Stop Loss: ₹2,413.75 (placed just below the recent swing support)
Upside Targets
- Target 1: ₹2,647.30
A near-term resistance level where partial profit booking is advisable. - Target 2: ₹2,818.30
A stronger resistance zone aligning with previous price reactions. - Target 3: ₹3,045.15
An extended upside objective for medium-term traders riding the trend. - Extended Target (Optional): ₹3,361.80
In the event of sustained bullish momentum and favorable market conditions.
Trading Strategy
Traders may consider initiating fresh positions near the current levels between ₹2,530 and ₹2,540.
Risk management remains critical — a strict stop loss at ₹2,413.75 is recommended to safeguard against any adverse moves.
As the stock approaches Target 1, booking partial profits is prudent, while the stop loss for remaining quantities can be trailed to the entry point. This approach enables participants to ride the trend risk-free towards the higher targets.
Technical Insights
- Breakout Confirmation: The stock has convincingly closed above its downward sloping trendline, signaling a potential trend reversal.
- Momentum Indicator: The RSI currently stands at 52.80, reflecting growing bullish strength without entering the overbought territory.
- Price Structure: Recent formation of higher highs and higher lows further reinforces the bullish bias.
Final Thoughts
The breakout in Poly Medicure Ltd marks a technical shift worth noting for active traders and swing investors. With well-defined risk levels and realistic targets, this setup offers a compelling risk-to-reward opportunity — but disciplined execution and adaptive profit booking remain key.
Disclaimer:
This analysis is intended for educational purposes only. Investors should conduct their own due diligence or consult a certified financial advisor before making any investment decisions.