On the daily chart of HCL Technologies, we can observe a strong breakout above a resistance zone that was tested multiple times. Following the breakout, the price has pulled back to the flip zone, presenting a potential swing trading opportunity.
For an entry, it is advisable to wait for the close of a strong bullish candle near the flip zone before going long. This will help to confirm the bullish momentum and reduce the risk of a false breakout.
Regarding the stop loss, it is recommended to place it below the flip zone to limit potential losses if the price does not follow through with the expected bullish movement.
Regarding the target, it would be prudent to aim for the next resistance zone, as marked on the chart. This area represents a potential area of profit-taking and could stall the upward momentum of the price.
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For an entry, it is advisable to wait for the close of a strong bullish candle near the flip zone before going long. This will help to confirm the bullish momentum and reduce the risk of a false breakout.
Regarding the stop loss, it is recommended to place it below the flip zone to limit potential losses if the price does not follow through with the expected bullish movement.
Regarding the target, it would be prudent to aim for the next resistance zone, as marked on the chart. This area represents a potential area of profit-taking and could stall the upward momentum of the price.
Thank you for reading. Please consider liking and following me for more trading insights.