200 EMA not letting it hit lower channel & stock is trying to break out from the upper channel.
2 Possibilities:-
1. Stock breaks out right away (either by opening gap up or slowly with volumes), but ADX is falling.
2. It can take support at 200 EMA again & then try to breach.
How to trade?
The exact levels will be updated once we have a clear breakout. Our first target will be 50 points from breakout/breakdown trailed to the next 50.
Stop loss at 200 EMA.
2 Possibilities:-
1. Stock breaks out right away (either by opening gap up or slowly with volumes), but ADX is falling.
2. It can take support at 200 EMA again & then try to breach.
How to trade?
The exact levels will be updated once we have a clear breakout. Our first target will be 50 points from breakout/breakdown trailed to the next 50.
Stop loss at 200 EMA.
Now the stock is below our trend line once again which means there is some resistance in that zone just above our trend line (536-546 zone).
If the stock tries to breach it again, then it may form a long candle instead of a few short ones completely eliminating that resistance.
On the downside, we have our 200 EMA & our support zone for a small pullback.