It was in the month of July 2020 that Dr Reddy's had broken out into new All-Time Highs
At these points, as we donot have any historical data to mark resistance/target, we have to look at Fibonacci Extensions to derive at probable break-out targets in following manner
Now that we have retested the break-out point,and shown initial signs of Bounce, let us see what we can observe in different time-frames.
As all of us know,in Technical Analysis, previous Resistances,once broken, are treated as current supports and the demand zone from where the spurt to breach previous resistance originated becomes a good DEMAND ZONE (DZ). So in Monthly Charts, 3800-4075 zone had become an important DZ
In Weekly Charts, we can further fine-tune this DZ as lying in 3950-4140 zone . And price has shown a bounce from this very zone only. Only problem is === VOLUME which is not very convincing.
On Daily Charts, a copy-book trade-set-up of positive Divergence and Breakout from Demand Zone has occurred
BEST -BUY= 4350-4400
STOP-LOSS = 4100
FIRST TARGET = 4900
And if in the meanwhile, volume support becomes visble, one may hold it for new All-Time High as well.
