DSIL SWING TRADE (BUY SETUP)
STATUS: ACTIVE (TRADE SETUP IS STILL VALID)
Trade Plan: (If considering entry):
- Buy Range: Below 6.70
- Stop-loss: Closing below 6.10
- Targets:
- 1st: 7.7
- 2nd: 8.72
- Final: 9.44
Technical analysis of the DSIL (D.S. Industries Limited) based on daily timeframe:
Chart Overview:
- Ticker: DSIL (Pakistan Stock Exchange)
- Current Price: 6.49
- Last Day Volume: 541.9K
- Time Period Shown: Jan 2022 to Jul 2025
Trend Analysis:
- 2022 to Early 2023:
- Strong downtrend from ~10.00 to ~1.00.
- Lower highs and lower lows, heavy distribution phase.
- Mid-2023 to Early 2024:
- Price consolidated between ~1.00 and ~2.00 for months — base formation.
- Accumulation pattern suggested by higher lows and gradual volume increase.
- Mid-2024 to Early 2025:
- Strong breakout above 2.00 zone (accumulation breakout).
- Sharp rally to ~9.44 (Feb 2025) — parabolic rise.
- Pullback followed, suggesting profit booking or exhaustion.
- Mid-2025:
- Recent price action showing higher lows after dip to ~3.60.
- Current price is attempting a new breakout above 6.80–7.20 resistance zone.
Support & Resistance Levels:
- Key Resistance:
- 6.70–7.20 (BREAKOUT)
- 7.80 (short-term)
- 8.72 (mid-term)
- 9.44 (long-term previous swing highs)
- Key Support:
- 6.10–6.20 (short-term)
- 5.20 (medium-term trend support)
- 3.60 (critical long-term support)
Volume & Price Action:
- Volume is relatively healthy during the recent uptrend (accumulation visible).
- Rising volume on green candles and lower volume on red — a bullish volume profile.
- Last few candles show some selling pressure around 6.80–7.20.
Pattern & Indicator Insights (Visual):
- Possible Cup & Handle formation: From Feb 2025 peak (9.44), forming a deep cup and now a handle.
- Ascending Triangle in recent price action (higher lows).
“Successful trading is not about predicting the market; it’s about preparing for every possible outcome”
The current structure of DSIL’s price action highlights a strengthening bullish sentiment in the market. Recent trading volumes indicate heightened participation, with institutional buyers seemingly accumulating positions at lower levels. The gradual yet consistent rise in price above key support zones suggests a potential shift from consolidation to an upward breakout phase.
Investors are closely monitoring the 6.80–7.20 resistance range, as a decisive close above this level could trigger a surge in bullish momentum. Historical data shows that DSIL has experienced similar breakout patterns in the past, often leading to substantial short-term rallies. Market participants are therefore positioning themselves strategically, balancing entry points with appropriate stop-loss placements to mitigate risk.
DSIL Technical Outlook: Bullish Momentum and Strategic Positioning
Technical indicators further support the bullish outlook. The moving averages are trending upward, confirming the sustained buying pressure fitness. Additionally, RSI levels remain within a healthy range, indicating that the stock is not yet overbought. This combination of favorable technical signals enhances the probability of continued upward momentum in the near term.
Despite the optimistic forecast, prudent risk management remains crucial. Traders are advised to keep a close watch on volume spikes and price rejections near resistance levels. A sudden reversal could signal profit booking, and as such, having a clear exit strategy will be vital to protecting gains and minimizing losses.
Conclusion:
The stock is in a bullish trend. A daily close above 7.2 will confirm a breakout.
The best strategy is to accumulate below 6.7 before the breakout. However, an aggressive move is expected once the price closes above 7.2 on the daily timeframe. First target is 7.65-7.8; this should be short-term profit taking area. For 2nd targets, index has to close above this range. Closing above 2nd target would be favourite for 3rd target.
For swing trading, in case the stop-loss is hit, one may either close the position or, if there is enough reserve and patience to hold for some time, consider accumulating below the stop-loss level. This is possible because the stock has multiple support levels. Overall, the trend could remain bullish, and the stock may recover
DISCLAIMER: THIS IS NOT A BUY/SELL CALL. THIS CONTENT IS FOR EDUCATIONAL PURPOSE ONLY.
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