Globus Spirits' charts says a lot these days!! Lets us analyze step by step! This analysis will be purely based on Price Action...
"WEEKLY CHART"
Firstly, look at the weekly chart above. There is a clear 5 year old trend line, and current price is on the verge of giving a breakout from this multi-year resistance line. The volumes here too are favorable. RSI too shows momentum!!
Now, since this is on the VERGE of breakout it is important that we see other timeframes charts too. Let us see what they have to say.
"DAILY CHARTS" (Wasn't able to upload the daily charts because of TradingView feature. You should open daily chart of Globus Spirits on the side for better understanding)
If you watch closely to the daily charts of Globus Spirits, it is visible that the stock is trading continuously between the range of 300-350 from last October. It came above this range but wasn't able to sustain for a long time. Now look at the last candle (4 June, 2021). Firstly the volumes are brilliant! Secondly, the price went up the trading range of 300-350 but wasn't able to sustain above that point! But does this mean that we should avoid this stock?
"MINUTES' CHART" (Please open 5 min and 1 minute chart aside for better understanding)
Looking at the minutes' chart, if you look at the candles which are towards the day end; the volumes of these candles are significantly high compared to the rest of the day. This shows interest of investors in this stock. Hence, it can be predicted that the price of Globus Spirits may go up on Monday (7 June, 2021) and hence giving us a breakout in both weekly and daily charts (given that volumes are high on Monday)!!!
"CONCLUSION"
I would recommend going long on Globus Spirits IF it gives a breakout on Monday with good volumes!!
FOLLOW IF YOU LIKE THE ANALYSIS LIKE AND COMMENT WHAT YOU THINK ABOUT THIS!!
THANKS
Trade active
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NOW, THE TRADE IS ACTIVE!! YOU MAY BUY GLOBUS SPIRITS AT CMP FOR AN UPSIDE OF 8-10%!!!
Trade closed: target reached
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SUGGESTED LONG ON GLOBUS SPIRITS AT 385. TOUCHED 460 TODAY!!! 20% RETURNS IN JUST 6 DAYS!!!!
It's clear showing break out and very soon see 380 to 425
Keshav2329
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@narenderkumar2215, Hey Narender! Sure it broke the resistance line on the daily charts and sustained above it. But if you notice the candle, there is a good selling pressure form the level of 368. This may create a little worry among traders. Moreover, if you look at the 1 minute and 5 minutes chart, there is a good selling pressure at the day end there with good volumes. Again, a thing to think about. Plus, as we know that breakout must be accompanied by good volumes and a good body of the candle. Here, we can see great volumes but body of the candle is not satisfactory (due to the selling pressure at the end). In addition to this, if you look at the weekly charts, the price didn't even sustain above the resistance line of the weekly chart. All these points may create a doubt in the traders' mind! Hence I would recommend to wait for a good positive candle (even with normal volumes will work) which must sustain above the resistance lines of both daily and weekly charts! This will eliminate the doubt and will clearly give a bullish signal!! Hope I cleared your doubt! PLEASE LET ME KNOW IF SOMETHING ELSE IS IN YOUR MIND.
successfulCode5059
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@Keshav2329,
Will it go beyond 400?
I am a novice and without researching much i made some purchases
Keshav2329
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@successfulCode5059, Hey! Yes it should easily break 400 level for at least an upside till 415 approximately. By the way you really should game knowledge on Stock Market first then invest, otherwise the consequences wont be favorable. Also, may I know your buy price and quantity.
successfulCode5059
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@Keshav2329,
Thank you for your reply! Much appreciated
I bought 1500 shares at 355