rahuljaiswal1580

SWING TRADE - PURE PRICE ACTION

NSE:BPCL   BHARAT PETROL CORP
Gap formed on march 12th acted as a strong resistance which was tested multiple times. Stock is moving in a clear uptrend forming HH &
HL and with a good accimulation near its resistance area it has given a clear breakout with massive volumes and good relative strength .

Now it is at very crtitical level i.e. its previous support, which has now become its resistance (445-450 levels).
If the stock is able to hold these level and sustain for a meaningful time above this level, it has a good potential to rally more from here since buyer's momentum is too good (check if RS is above the zero line).

But if it opens gap down or isn't able to sustain above this level, a good sharp fall can be seen on account of profit booking or seller's waiting to trade at this resistance levels. In such case 389-390 is a strong support.
Let's wait for some more price action. Trade with caution.

Disclaimer: Take this view for educational purpose. Trade on your own risk.
Happy trading!

Comments

Boom!!
Stock has upmoved almost by 10% (40+ points in intraday)
What a rally!
That's the power of perfect analysis.
Hope you all liked the analysis.
Happy trading!
Reply
VigneshIyer rahuljaiswal1580
@rahuljaiswal1580, no offence the stock did breakout. But its not a perfect analysis . U did say the stock needs to sustain for a meaningful time before breakout.
Reply
rahuljaiswal1580 VigneshIyer
@VigneshIyer, Hey! Appreciate your feedback. I always emphasize over "wait for the right price action and then trade". And a real experienced trader would always consider that and wouldn't blame the market or analyst for that. No one in this world can predict the market timing perfectly, it's all price action, entry, exit , SL, target which defines a particular trade. My only job is to bring my analysis in front of an individual and the individual's job is to study that, analyse that, vett, plan and execute a trade if deems fit for his/her risk apetite seeing the right price action. Hope you understand. Happy trading!
Reply
Good analysis
Reply
@mahawars, thanks for the appreciation.
Reply
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