tksthathachari

ABFRL - At a make or break point

tksthathachari Updated   
NSE:ABFRL   ADITYA BIRLA FASH
The chart is of daily timeframe . We can observe that the stock has taken support from the support trendline for more than a year on multiple occassions (more than 5). Thus this support can be considered as a strong one. However a support zone or trendline which has been tested multiple times tends to break.

So what should a trader do here?
It is best to wait for the stock to reach the support trendline and observe the candle formation. If the stock respects the suppor trendline and forms a bullish hammer right at the support trendline, then one should go on the buy side with a stoploss just below the support trendline. If the stock breaks the trendline support, then one can short it with a SL above the trendline.
Comment: As predicted, the stock formed a bullish hammer on the support trendline. So entry point would have been at 199 just at the top of hammer candle with a SL of 185.80. A 1:1 target would be more than sufficient. Stock has now moved up by 4% from entry point.
Trade closed: target reached: All targets achieved..Made a high of 220. Pure 10% in just 1 week..Cheers to those who traded this..

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