IRB Infrastructure Analysis

4 thg 11, 2022

Hello everyone!

We say market will be strong in coming days when most of stocks start looking strong on chart, one such chart is of IRB infrastructure. In IRB infrastructure we will do monthly-weekly-daily chart analysis and look at smaller time chart like 1hr and 15min to find out our entry.
Monthly : Stock is testing its 12 year long trendline and also Cup & Handle formation is in process.
Weekly : Stock is consolidating in a triangle pattern of which, trendline is already being tested thrice.
Daily : Reverse head and shoulder formation in process(breakout is pending).

From monthly Cup & handle we get a target of about 500, but that is possible only when it give monthly candle closing above its 12 year long and strong monthly trendline which we can see when its weekly trendline is broken (as target for triangle pattern breakout is highest point of the triangle i.e.,320). Looking at the head and shoulder of daily chart, once it is broken we can expect a target equivalent to its head length i.e., 290 which will result in weekly trendline breakout. So summarizing all we can expect a target of 500 once in daily chart head and shoulder will be broken out.

Now we will look in smaller time frame to find out if we are getting ang sign of strength in this stock.
In hourly chart stock has taken support at its six days trendline and RSI is also consolidating near 40 from past 10 sessions. If we further zoom in we can see that in today's session(5th Nov) in last 15 min it has given breakout from a Cup & Handle, which is further confirming the strength.

I am also considering this stock since now we are getting a very good risk to reward as SL will be below 15 min Cup & Handle, which is only 4%.

NOTE : It is not for sure that once it will give breakout from reverse head and shoulder in daily chart it will go up to 500(it only indicates to go up to 290), but since we are entering at a very reasonable place we can hold it for that by trailing our SL(how to do that we will discuss on some other thread) or we can book our profit partially at 290(daily breakout target), 320(weekly breakout target) and hold rest for 500(monthly breakout target).

THANKS!