AU Bank Breakout candidate.
Updated
Stock tried to break out then failed. Came down.
As expected with down move came big volumes. How ever the last bar ( Green Arrow ) before pullback was with highest volumes in later end of the down trend, Usually it looks bearish but it is trend reversal because market makes wont short at such lower levels.
Then comes the pullback ( purple arrow ) with small bodied candles everyone was waiting for a big red bar to go short. No one is thinking of going long. Many would have shorted here in anticipation of follow up selling.
But there is big green bar ( Blue arrow ) with volumes. Now stock is consolidating just below major breakout level.
This is how Weak Longs were kicked out from the trade.
Now stock approaching the resistance third time with higher lows. High chances of breakout.
As expected with down move came big volumes. How ever the last bar ( Green Arrow ) before pullback was with highest volumes in later end of the down trend, Usually it looks bearish but it is trend reversal because market makes wont short at such lower levels.
Then comes the pullback ( purple arrow ) with small bodied candles everyone was waiting for a big red bar to go short. No one is thinking of going long. Many would have shorted here in anticipation of follow up selling.
But there is big green bar ( Blue arrow ) with volumes. Now stock is consolidating just below major breakout level.
This is how Weak Longs were kicked out from the trade.
Now stock approaching the resistance third time with higher lows. High chances of breakout.
Note
Start booking profits.Or
Book part hold rest with CTC SL
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