BAJAJ AUTO - Potential Distribution Phase | Short Setup & TargetBajaj Auto LimitedNSE:BAJAJ_AUTOPriceactionacademyHello traders, let me share a detailed price action breakdown and a short trade setup for BAJAJ AUTO (Daily Chart). After printing a high around the 11,856–11,863 level in early August, the stock has struggled to close above this mark for over 9 consecutive trading sessions. The current price action displays classic characteristics of a distribution phase, suggesting buying momentum is exhausting near the top. Key Technical Observations: Resistance & Consolidation: Price is currently capped beneath the major resistance line, consolidating tightly between 11,863 and local support near 11,525. RSI Bearish Divergence: As highlighted in the indicator panel below, while price action tested local highs, the 14-period RSI clearly exhibits lower highs, confirming a strong momentum divergence. Failure to Break Out: Repeated rejections at the top boundary signal that supply is heavily absorbing demand at these elevated levels. Expected Next Move & Trade Setup: Instead of front-running a breakdown, waiting for the price to definitively slip below the tight consolidation box provides a much higher probability entry. I am expecting the price to fail to make a fresh high and slowly but steadily move down toward its previous base. Short Trade Plan: Entry: Initiate a short position below 11,450. Stop Loss (SL): Place SL above the recent highs at 11,900. Targets: 10,400 / 10,000. Once this distribution phase completes its correction into the 10,000–9,500 support zone, we can anticipate a fresh round of institutional accumulation to start the next major bull leg. Trade Psychology & Risk Management: Key Takeaway: In distribution setups, chasing breakouts late in the trend often traps retail traders. Wait for the structural confirmation (the break below 11,450) before pulling the trigger, and always stick to your defined risk via a hard stop loss. What are your thoughts on BAJAJ AUTO? Are you planning to take this short setup, or are you waiting patiently for the dip to build long positions? Let’s discuss in the comments!