Hey friends,
This is one swing trade which I took in recent times. The name of the stock is Shree Renuka Sugar. This stock has been in my radar for few days and was waiting for the perfect opportunity.
I have been following this stock for few days and was able to observe that the stock was giving a movement inside the channel which you could see from the above screenshot. The stock was travelling almost above the EMA 20 and 40 for most of the time inside the channel, although there was a downside seen which was due to the result of the crises between Russia and Ukraine. But the stock didn't break the channel which gave a clear indication that still this can be kept in my radar. Once when it crossed EMA 20 and 40, and also the volume was also huge I made my entry.
This was a perfect entry I would say as it showed a clear bullish trend. I was aiming for nearly 10 points and made my setup in such a manner that I'll exit the trade once when the channel gets broken. During my holding time, to my surprise I could see that the stock was rocketing high and then came to know that this action was a result of the latest news that the Adani groups are planning to take over Renuka sugars in recent future. As a result I was able to hit my target at the earliest.
In this trade, the technical analysis was playing a huge role and also, like icing the cake, Adani group came into action due to which the stock gave a tremendous breakout.
