varadtambolkar

AU Bank Breakout candidate.

Long
NSE:AUBANK   AU SMALL FINANCE B
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.
Comment: Start booking profits.

Or

Book part hold rest with CTC SL

Comments

This idea has been chosen for the Editor's Picks. Thanks for the detailed contribution.
200 coins
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hetuk19 AbhishekHSinghCMT
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@hetuk19, It's an educational idea, if I am correct. Please address to the author of the post. Thanks
+2 Reply
@hetuk19, short term expecting 1400 😃
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varadtambolkar AbhishekHSinghCMT
@AbhishekHSinghCMT, thank you 😃🤟🏾
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Great Analysis, detailed explaination. 'Usually it looks bearish but it is trend reversal because market makes wont short at such lower levels" - Thank you for the learning:)
Just curious to know- Should one take a trade only once daily chart also starts showing strength?
+5 Reply
varadtambolkar Ankit_Oberoi
@Ankit_Oberoi, longer time frame always guides short time frame.

Another way of looking apart from ' strength' is buy when worst is over and sell when there's too much hype going on.
+1 Reply
Ankit_Oberoi varadtambolkar
@varadtambolkar, Got it!
Reply
it will be a false breakout as rsi is showing negative divergence
+2 Reply
varadtambolkar rachnaarodhia
@rachnaarodhia, can you share the image? Or tell me the time frame?
+1 Reply