tomjm1

Why should we avoid this breakout?

NSE:GSFC   GUJARAT STATE FER
This chart gives us few convictions to go long, as there is a

a. Trendline breakout (1.)
b. Volume expansion (6.)

But,

a. It has not come out of the supply zone (4.),
b. It shows a bearish divergence (7.).
c. When we backtest, the morning star pattern created has failed before (2.).


This is NOT investment advice. This chart is meant for learning purposes only. Invest your capital at your own risk.