Simple Price Action Analysis: The level of 170-180 has been a strong supply and demand zone in the history of this stock. In the early years, this zone acted as heavy resistance zone. However after giving a successful breakout in 2nd half of 2017, this resistance zone was converted into support zone. This support zone was broken during previous year due to COVID crash. The stock gave a successful breakout out of these levels in the 2nd half of 2020. Now it is again acting as a support zone.
What to do? We can buy at these levels for a target of 200 or above 200 with a strict SL of 165. This makes a RR ratio of around 1:2.5. Very safe bet.
Disclaimer: This is not a buying recommendation. Please consult your financial advisor before taking any decision.
@tksthathachari, your analysis did yield fruit but exactly a month later ;-) Hard luck!! I guess this is still good bet.. Cheers!
tksthathachari
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@ADVIEW, Yes.It's sad that SL was hit. But I had again given a buying recommendation at 160 with a target of 200 in my personal group after seeing that it was forming good price action. I was pleasantly surprised that it rose by 25% in just 3-4 days..Positive news flow was the reason behind this. Cheers! Thank you for noticing my effort.
ADVIEW
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@tksthathachari: I have observed, you respond to most of comments, queries, opinions which is rare from fellow traders. It certainly helps a lot to get better picture and different views & thought process. Appreciate your approach. BTW, you mentioned personal group. Is that something which I can explore being part of that group? Not sure if it's paid/commercial? Cheers!
tksthathachari
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@ADVIEW, Thank you for your pleasant comment. I consider it my responsibility to explain to anyone who is interested my idea, thought and approach since it is a public post. I try to keep my analysis simple which can be learnt by any begginer. Thank you.