IRB Infrastructure Developers Ltd (IRBI) has given good convincing breakout and showing the signs of major upside reversal. So, I wanted to share my analysis and expectations about this stock for short term as well as long term with its chart.
The outlook of this stock is purely based on technical analysis and is based on my personal experience. I am just sharing it but I don’t take responsibility for any trading or investment decision.
So, let’s have a close looks at its monthly and weekly chart. First I am looking at its life time move on monthly chart based on Elliott Wave Analysis.
This is monthly time bar chart of IRB Infrastructure covering life time of its move. Elliott Wave Analysis is no applicable on this stock because it recently registered is life time low and its entire previous move is negated. We can do Elliott wave analysis of IRB Infrastructure after formation of wave (1) and (2) only.
Based on “38% retracement Breakout Strategy”, 103-139 is major resistance and 139 is major upside breakeven point. If this stock completes a full monthly candle above 139 can result in bigger reversal towards 289-315.
But IRB Infrastructure recently gave convincing breakout above 02 years resistance with good volume on weekly chart. Let’s have a look.
This is weekly time bar chart of IRB Infrastructure covering move of last 2 years.
117 was good weekly support of IRB Infrastructure on closing basis in 2018-2019 and this stock tested this support 3 times before breakdown.
Later IRBI faced resistance around 117 and declined back to register life time low 45.60 during 2020 crash. But it bounced back sharply and broke this major resistance 117 with good volume. We can see that Volume is at its highest at the time of breakout and after breakout. This stock also closed 2 full weekly candles above 117, thus sustaining above the resistance.
This stock covered the full decline happened during 2020 crash, gave breakout above 02 years resistance with huge volume and also sustaining above the resistance. All these factors are indicating the signs of major reversal.
This stock can touch 169 as immediate/short term targets and further can bounce above previous high 315 if sustain above 169.
I personally would like to Buy this stock for medium to longs term on every decline till 117 with stoploss below 117 on weekly closing basis (a full weekly candle must closed below 117 for stoploss) for target 169. After 169, I will check the charts and will decide if I want to hold further or not. I can also accumulate this stock in SIP.
For Trading, I would like to buy this stock on every decline with stoploss below 117 for quick 5-10% gain.