Attractive Risk-Reward Opportunity

 KSCL : Resumption In Prior Bull Run !?!

This stock has been in a strong uptrend from March 2020 and this year overall has fared well for the stock. The upward momentum seems likely to continue in 2021. Overall chart structure seems attractive and offering the best risk-reward opportunity.   

I am following this stock from last many years and most of the time this stock has worked in favor and has moved as per the expectations, especially for positional trading. Looking at the chart setup I believe stock price likely to start the next phase of an uptrend.

Analyzing the weekly chart it has been observed that price was trading in Descending channel from last more than 2 years. This year the stock registered a decisive breakout from the mentioned pattern with supportive volumes and momentum. Post breakout price continued its up move for few weeks till 680 levels and thereon stock witnessed profit booking and which lead the price to drop towards Descending channel upper trendline which was earlier acting key resistance and now has turned into the support.

From the above chart, it is evident how precisely price has been respecting Parallel Descending Channel lines. From last many weeks, price has been taking support near channel line and in last week price witnessed strong upside movement and seems has completed the base and ready to commence its prior trend. The upmove in the week was well support with strong volumes which increases the reliability of the upmove.

Also near the same juncture there other multiple support visible which includes my Moving Average Bands, 50% retracement support of its prior whole rally from 274-683, Breakout from intermediate falling trendline with sizeable volumes, and wide bullish candlestick. Thus looking at the overall chart it gives a sense that price likely to resume its prior uptremd.

The Momentum Oscillator has reversed from oversold territory and recently has turned around taking cushion near 20 levels and its moving average with a positive crossover which is a bullish signal and complement bullish view on price. Also, the stock has been trading above all major moving averages which suggests strength in price in all time frames. 

Considering the above price pattern, volumes, and other technical studies, the price has the potential to scale higher in the coming weeks. In the short to medium run, the price has the potential to rally towards 590-650-730+ levels

The above view holds true until the price does not close below 480 levels. The strong support is visible around 511-496 levels.

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Disc. The above-shared analysis is solely my view as per my understanding and knowledge and for educational purposes. I will not be responsible for any loss or gain incurred.