AGP — Falling Channel Breakout & Bullish Divergence

Rana Ali Waseem | Technical Analysis

AGP Limited (PSX: AGP) is showing early signs of a potential trend reversal after an extended corrective phase. Price has been moving within a descending parallel channel since its July high near Rs. 217, but recent price action suggests that selling pressure may be weakening.

Technical Outlook

The chart highlights two important developments:

• Descending Channel Breakout: Price has pushed above the upper boundary of the falling parallel channel, supported by a strong bullish candle. Sustained price action above the channel would strengthen the reversal scenario.
• Bullish RSI Divergence: Price made fresh lows while RSI formed comparatively higher lows, suggesting weakening bearish momentum and a possible recovery.

Despite these positive signals, AGP needs to confirm bullish continuation by breaking above the marked entry level with a strong green daily candle close.

Trade Plan

• Entry (EP): Rs. 171.17 — breakout confirmation with a green daily candle close
• Stop Loss (SL): Rs. 143.80
• Target 1 (TP1): Rs. 194.55
• Target 2 (TP2): Rs. 217.66

Key Levels to Monitor

The Rs. 171.17 level is the immediate confirmation point. A sustained breakout could open the way toward Rs. 194.55, followed by Rs. 217.66. The stop loss at Rs. 143.80 defines the downside risk for the proposed setup.

Conclusion

AGP is developing a potential bullish reversal setup, supported by a descending-channel breakout and bullish RSI divergence. However, confirmation above Rs. 171.17 remains essential before considering the planned entry. Until then, the setup remains conditional.

This analysis is for educational purposes only and is not financial advice. Always use proper position sizing and risk management.

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⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →