LEC Technical Trade Setup: High-Momentum Breakout Above 2650
Liberty Energy Company Limited (LEC) has demonstrated a strong bullish expansion, surging to Rs. 259.90 (+3.09%) accompanied by significantly elevated trading volume. With the broader market (NEPSE) consolidating near critical inflection levels, LEC offers a compelling short-term swing trade setup as long as NEPSE maintains its position above 2650.
Technical Break downs and Key levels
1. Price Structure & Market Geometry
- Bullish Reversal Base: Following an extended decline into the 200.00–210.00 zone, price formed an equal-low (EQ Lows) structure supported by a medium bullish RSI divergence.
- Supportive Inversion Fair Value Gap (IFVG): The sharp upward breakout (Impulsive) created a demand block between 240.00 and Rs. 250.00, which now serves as primary structural support on pullbacks.
- Imbalance & Resistance: Price is currently absorbing supply in the 265.00 selling zone. A decisive break past this level opens the pathway directly toward the Rs. 276.00 Take Profit (TP) target (+7.01% potential gain).
2. Momentum & Volume Dynamics
- Volume Expansion: Trading volume expanded to 413K, nearly doubling its 20-day moving average of 442.113K, confirming institutional participation behind the move.
- Relative Strength Index: RSI (14) stands at 18. While entering overbought territory, high RSI readings during initial momentum phases frequently signal strong trend continuation rather than an immediate reversal.
Execution Strategy & Risk Management
- Entry Trigger: Confirm NEPSE holding firmly above 2650 during the first 60-120 minutes of the trading session before executing market orders.
- Profit Target: 276.00 (previous swing high / overhead TP line).
- Stop-Loss: Trail stop-loss orders just below the 245.00–250.00 IFVG support block to maintain an optimal Risk-to-Reward ratio.
- Risk Disclaimer: Trading in equity markets involves significant risk of capital loss. Market conditions can shift rapidly. Maintain strict discipline with position sizing and stop-loss execution.
| NOTE : FOR EDUCATIONL PURPOSE ONLY BY : RICKY SINGH |
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