Sobha Ltd – Falling Channel Breakout Watch

Sobha Ltd – Falling Channel Breakout Watch

SOBHA

📈 Pattern & Setup:

Sobha Ltd has been consolidating within a falling channel for several months and is now attempting to break above the upper trendline resistance near 1,550–1,560 levels. The structure shows a clear transition from distribution to accumulation — each dip is being bought, forming a higher low base inside the channel.

This setup typically signals the end of a corrective phase. A strong close above 1,570 with expanding volume could confirm a breakout, paving the way for a new uptrend. The measured move projection hints at a potential 30%+ upside from current levels.

📝 Trade Plan:

✍Entry: Above 1,570 (breakout confirmation)

🚩Stop-Loss: 1,485 (below the recent higher low)

🎯Targets:

Target 1 → 2,040
Target 2 → 2,145 (35% potential move)

💡 Pyramiding Strategy:

1. Enter with 60% position on breakout above 1,570
2. Add 40% more above 1,600 after volume confirmation
3. Trail stop-loss to 1,520 once price crosses 1,700

🧠 Logic Behind Selecting this Trade:

After a prolonged corrective phase, Sobha’s price action reflects quiet accumulation — evident from repeated rebounds off the lower channel support. The ongoing breakout attempt, if successful, could mark the start of a new impulse leg. With the real estate sector seeing fresh momentum, the risk-to-reward setup on this stock looks attractive.

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🔴Disclaimer:

This analysis is for educational purposes only. Not a buy/sell recommendation. Please do your own research or consult your financial advisor before trading.