Potential Long-Term Reversal Zone | Buy on Big Dips Approach
Renuka has been in a prolonged corrective downtrend since the peak around ₹68–70, but price is now testing a significant multi-year support cluster. The stock is trading near demand levels where strong reversals have occurred historically.
🔍 Technical Summary
Current Position
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Trading near long-term channel support & horizontal demand zones.
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Major support bands lie between ₹28 – 24 – 22
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Stronger support zone below lies around ₹17 – 11 – 8
Structure
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Price is almost completing a base formation.
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Any bullish reversal pattern from here could trigger a strong upside retracement.
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RSI is near oversold zone, indicating weakening selling pressure and potential reversal.
🛒 Accumulation / Buy Zones
| Zone | Comment |
|---|---|
| ₹28 – 24 | First strong buy zone / reaction expected |
| ₹22 – 17 | Deep correction / highest value zone |
| ₹11 – 8 | Extreme pessimism area – long-term investor zone |
📌 Low-risk entries generally happen when price reaches these cycle support levels.
🛡 Stop-loss & Invalid Level
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Below ₹5: long-term view invalid & further weakness possible
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Historical bottom area ₹3.25 is the absolute support line
Holding above this region supports a reversal structure.
🚀 Upside Target Projections
| Target | Area |
|---|---|
| ₹35 – 43 | Initial bounce zone / resistance |
| ₹50 – 57 | Main breakout zone |
| ₹78 – 85 | Long-term target zone if trend reverses |
Breakout above ₹43 will be the strongest confirmation of trend reversal.
📈 RSI Commentary
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RSI currently hovering near oversold region.
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Buying strength increasing on dips.
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Previous reversals from similar RSI levels led to strong rallies.
Bias & Strategy
🟢 Primary View: Buy on dips only
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Best opportunities occur around ₹28 → ₹24 → ₹22 → ₹17
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Long-term bullish only above ₹43
🔴 Alternate View
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Close below ₹5 may extend bearish trend significantly.
💬 Question for Followers
Do you see RENuka forming a reversal base or still more downside left?
Comment “Reversal” if bullish or “More Down” if bearish 📩
⚠️ Disclaimer
Educational chart analysis only, not investment advice. Do your own research & risk management.
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