Let the chart conveys the ground reality of area of value and location!
Minhaj_AK
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This analysis should definitely work. I have initiated a trade on 6 May(80/-). Volumes have constantly been above average. But i have noticed, it's price closely follows the sentiment of Nifty 50. Your thoughts?
raavigeorgian
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@Minhaj_AK, That's a good observation man. BEL is part of one of the NIFTY indices. And index stocks move mostly in line with NIFTY. Market is bullish, it'll reach your target soon.
Minhaj_AK
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@raavigeorgian, Today booked some profit at 156. Next levels i am watching are 180/190.
raavigeorgian
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@Minhaj_AK, Yes, 180-185 should be a good zone to book profits.
bhai bought it today at 154
currently at 149.7
what should I do?
Minhaj_AK
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@Nitishksn71, well, i am not too much experinced to advise you but i can definitely say that today was not a day to enter this stock. It was falling on every 15Min/1hr candle that too with lot of momentum. Even the volume was confirming it.
Moreover, the price has also closed below the half of prev.week candle(around 151/-). I see it as a very bearish sign.
Such a correction is seen when price is over stretched due to profit booking. Hence it is healthy in some way.
Personally, if the price goes below 143/- i would exit with a loss.
@Minhaj_AK, You're on point. The volume bars on the big bearish candle is a concern. Since it has closed below the daily breakout candle, there are less chances of recovery. I'd exit here and re-enter when the vol dries up and it starts taking support on the 20VWMA.
Seems like the new trend is failed breakouts (corroborated by many experts). That's where the smart money is making most of its money these days.
Minhaj_AK
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@raavigeorgian, thank you bro for confirming. Exited the trade now at break-even (150/-).
Could you please explain this ....'vol dries up and it starts taking support on the 20VWMA'
raavigeorgian
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@Minhaj_AK, Gil Morales uses this setup when breakouts fail. Essentially, the volume drives up/down a stock near breakout points. If a stock has had a failed BO, the volume that has been driving it down should stop somewhere, and fresh buying positions would initiate for another attempt. So we take 20 Day Volume Weighted MA as our closest reference point near BO area.