JDMT — Fibonacci Retracement & Potential Bullish Falling Wedge

Timeframe: Daily (1D)
Analysis by: Rana Ali Waseem

Technical Outlook

JDMT is undergoing a correction following its strong rally from April to August. Price has retraced a significant portion of that advance and is now forming a potential bullish falling wedge pattern, characterized by downward-sloping, converging trendlines.

The stock is approaching an important accumulation area between 105–120, which aligns with the Fibonacci retracement zone. This region could attract buying interest, but the pattern and support zone still require price confirmation.

Fibonacci Levels

• 0.236: 167.22
• 0.382: 146.77
• 0.500: 130.24
• 0.618: 113.72
• 0.786: 90.18

The 0.618 Fibonacci level at 113.72 lies within the broader 105–120 accumulation zone. Price is currently trading around 111.00, making this area important to monitor.

Trading Strategy

Early accumulation approach: Investors considering an entry within the 105–120 zone should follow strict risk management and respect the marked stop-loss level.

Confirmation-based approach: A more conservative strategy is to wait for a breakout of the falling wedge, followed by a strong green daily candle closing above 130.67.

Trade Levels

• EP: 130.67 — after confirmed breakout and daily green candle closing
• SL: 89.85
• TP1: 170.09
• Ultimate Target: 199.66

Momentum Analysis

RSI is around 27.63, below its average of 43.38 and below the 30 threshold. This indicates weak momentum and potentially oversold conditions. However, oversold readings alone do not confirm a reversal; price action must validate the bullish scenario.

Conclusion

JDMT is approaching a key Fibonacci retracement and potential accumulation zone while forming a falling wedge. The 105–120 region is important for monitoring a possible base formation, but the preferred confirmation is a breakout above 130.67 with a strong daily close.

Until that breakout occurs, the setup remains a potential bullish reversal rather than a confirmed trend change.

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

⚠️ 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 →