Bajaj Healthcare - Fresh Opportunity for Upside Move!

📈 Bajaj Healthcare - Fresh Opportunity for Upside Move! 🚀

🔍 Key Observations:

Stock is forming a CNH (Continuation Narrowing Pattern) on the daily timeframe.

Broke out of a 3-year-old trading range on 18th Dec 2023.

Consolidating in a narrow range since 19th Dec 2023.

Volume confirmation (3x-5x) and a strong candle needed for breakout confirmation.

Broader markets are still in a weak structure (LL-LH), so trade cautiously.

🎯 Trade Setup:

Entry: Above 717 (Breakout level).

Stop Loss (SL): Closing below 595 (17.01% risk).

Target 1 (Positional): 942 (31.38% reward).

📊 Risk-Reward (RR):

RR Ratio: 1:1.8

💡 Trading Strategy:

Initial Entry: Buy above 717 with a small test quantity (limit position size).

Add More: On breakout and retest (if it occurs).

Overall Position Size: Keep it low as we are trading against the broader market trend.

Wait for Confirmation: Broader markets need to show signs of reversal (closing above 50-200 DMAs) for scaling in further.

⚠️ Disclaimer:

This is not investment advice. Trade at your own risk.

The broader market is still in a weak structure (LL-LH), and the probability of failure is high.

Always use proper risk management and limit position size.

Past performance is not indicative of future results.

📌 Key Takeaways:

CNH pattern suggests a potential breakout.

Volume confirmation is critical for validity.

Trade cautiously in a weak market environment.

RR of 1:1.8 offers a favorable setup if the breakout sustains.

🚨 Final Note:

Personally, I will scale in only when the broader markets show signs of reversal (closing above 50-200 DMAs).

Until then, trade lightly and stay disciplined!