After forming MACD & Stochastic RSI divergence the stock has moved significantly higher, with a gradual increase in volume. It is now taking support on the previous resistance. A strong closing above 2870 would be a good buy confirmation.
Adding to this, there is a symmetric triangle breakout happened here. As per this pattern, there is a possibility of 25% profit.
@TRADERSANATH How do you decide the entry point here as 2870?
I usually buy when there is a strong volume and candlestick pattern on first pullback after breakout.
But I'm not getting confidence on deciding the entry point still.
TRADERSANATH
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@newinthefield Thankyou for adding in more info and sorry for the confusion caused by my way of putting it. 2870 was yesterday's high and is very close to the previous HH of 2888. 2870 is not the entry price but just for the sake of confirmation. And by "a strong closing above 2870", I meant a strong bullish candle with huge volume as you have said.
TRADERSANATH
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@newinthefield 2870 is for agressive traders, if you are a conservative trader you can wait for the price to close above 2890 or 2900
newinthefield
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@TRADERSANATH, Thanks a lot for the explanation :) :cheers: