DIVISLAB forming a beautiful price action pattern
DIVIS LAB has formed a descending triangle pattern with significant price action setups.
1. We can spot a supply zone that has been marked on the chart, a good amount of shares were exchanged at that price before the prices came falling down.
2. The price then took support from the demand zone as marked and made a new swing high which gave a breakout but with low volumes which ultimately failed and again prices dived deep down.
3. The last major fall was initiated by a bearish engulfing pattern indicating that sellers are now active at that range and GTT orders might be in place there so that region is very important for us.
Now, if the prices break down from the supply zone we can see another sharp fall or if it takes support we can easily see a rally upwards toward the 3800 zone.
1. We can spot a supply zone that has been marked on the chart, a good amount of shares were exchanged at that price before the prices came falling down.
2. The price then took support from the demand zone as marked and made a new swing high which gave a breakout but with low volumes which ultimately failed and again prices dived deep down.
3. The last major fall was initiated by a bearish engulfing pattern indicating that sellers are now active at that range and GTT orders might be in place there so that region is very important for us.
Now, if the prices break down from the supply zone we can see another sharp fall or if it takes support we can easily see a rally upwards toward the 3800 zone.
Comment:
Breakout done with 6%+ intraday momentum