EVERESTIND's Recent Breakout - A Dive into the Technical

πŸ“ˆ EVERESTIND's Breakout Analysis πŸ“‰

Hello, fellow traders! Today, we're diving deep into EVERESTIND's breakout that occurred on 7th August 2023, shortly after the company announced impressive financial results. The stock has shown some intriguing patterns, and I'm here to break it all down for you, especially if you're new to the world of trading. Let's get started!

πŸ” Key Observations
  • EVERESTIND announced stellar financial results, leading to a breakout on 7th August 2023, accompanied by impressive volume.
  • Before this breakout, the stock maintained a robust base hurdle, with previous swing lows remaining unbroken.
  • High volume on bullish candles indicates potential accumulation.
  • Despite the price decrease over the past two days, the last candle is an inside candle, with its mother candle being a large bearish one. However, the selling volume is minimal.
  • The price seems to be retesting the breakout, possibly due to RSI bearish divergence.

    πŸ“‰ Trading Strategy
  • First Entry: Buy if the high of the inside candle is broken, around 1030.
  • Stop Loss for First Entry: Below the inside candle.
  • Second Entry: On a retest of the breakout, around the 1000 level.
  • Stop Loss for Second Entry: Below the plotted support zone on the chart, which was previously a resistance.

    πŸ“š Let's Learn Some Technical Terms!

    1. Inside Candle: A candlestick pattern where the current candle's high and low are within the previous candle's high and low.
    2. RSI Bearish Divergence: When the price makes a new high, but the RSI fails to make a new high, indicating potential weakness in the trend.
    3. Accumulation: A phase where investors buy or "accumulate" a stock in anticipation of a future price increase.

    🚫 Disclaimer
    This analysis is for educational purposes only. I am not a SEBI registered analyst. Always do your research before making any trading decisions.

    "In trading and in life, patience is not just a virtue, it's the key."

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