Stock-Holmes

ASIAN PAINTS... LOOKING GOOD

Long
NSE:ASIANPAINT   ASIAN PAINTS LTD
A good triangle had formed again in the charts. Watch for breakout tomorrow. Looks good for targets 3080 and 3130 within the next one week.
Trade active: Looks like a bullish breakout as expected...
Trade active: Bang on target! Such an easy trade.. We watched and followed every move of this script.. Hope you enjoyed this guys....

Comments

Lots of lessons learnt from this analysis...
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Trying to clear my basics. Isn't a Descending triangle a indicate a potential bearish breakout?
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Stock-Holmes tanmayjalan
@tanmayjalan, Hi. Very true. A descending triangle is usually considered to give a bearish breakout, but not always. A bearish breakout occurs more commonly in a downtrending script. My view was bullish because the Asian paints chart has been on an uptrend for some time now. We can see a somewhat similar descending triangle from 15 April to 12 May which broke out upwards. The RSI in the daily chart is 46 which is definitely not in the oversold range. The candles towards the apex of the triangle are green. The script had corrected about 200 rupees (6.5%) from its recent high. I had given my views based on these findings.
Still.... Both bullish breakout and bearsih break down are possible here. I recommend you wait for a definite movement in the script before entering. We should have a clear idea in the next 1 or 2 trading sessions. Hope you are convinced. Happy trading!
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Stock-Holmes tanmayjalan
@tanmayjalan, Hi.. Hope you are watching the breakout.
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tanmayjalan Stock-Holmes
@Stock-Holmes, awesome explanation above. It makes sense and the breakout confirms. Thanks for teaching that looking at multiple parameters is important to determine the most probable direction :)
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Stock-Holmes tanmayjalan
@tanmayjalan, Thank you.. Happy trading.
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