VPA_TRADER

TREND-LINE-CHANNEL-BREAKOUT-ACCUMULATION-1W

Long
NSE:HSCL   HIMADRI SPECIALITY
So the price action concept is:

had been falling till Mar 2020 since 2017. since 2017 we saw a steady fall till Mar 2020.

1. Since Mar 2020 , it kind of went into a consolidation between 63 and 31 levels.

2. Now let's look at the structure. The entire fall can be condensed into a downsloping channel. There are two upper trend lines . Both have been tested at least 3 times. Currently both these trend lines have been broken. Secondly, we see an accumulation after fall which seems like the consolidation before high momentum breakout.

3. Within the accumulation we can see higher lows and same high, which means the 63 level has been tested several times, once that level breaks an upmove can start.

Now let's look at the Volume Aspect-:

---> 1. Looking at the Volume Profile , we find the volume near 63-31 level is extremely high as compared to historical volume at previous price levels. Secondly, all the green (buying volume ) is very high and red(sell volume ) is very low. Which further confirms this as an accumulation region.
i:e During buy volume=high, then price retraces with low volume and then again high volume buy-----> this forms a closed accumulation region.

2. Since the historical volume is low, There is very less barrier or resistance, which means once this breaks out, the momentum can be expected to be smooth and STRONG.

ENTRY-:
Clearly the 61 level is very important. That is the resistance of the accumulation region. So a confirmatory breakout above 61 level will signal entry.

TARGET WITH LOGIC-:
The tentative target level is all time high because since the volume is very low, but present volume is relatively stronger, any breakout can be assumed to be very strong and long-lasting. i:e it could easily cross the price levels.

Nonetheless the imp levels to watch are 108, 140 and 197( all-time-high ).

EXIT-:
Since exiting at target is ideal, we need to keep trailing stop-loss conservatively.
We can use
1. Lows of candles
2. Moving Averages
3. S/R levels
If stop-loss is hit----> exit. Else hold on till the target level.

STOP-LOSS-:
31 is the consolidation support level . Since our target is optimistic we can choose 31 as the conservative stop-loss level.

**ALL UPDATES ON ENTRY WILL BE POSTED HERE. TRAILING STOP-LOSS, EXIT AND CHANGES IN TARGET LEVELS AND ANY OTHER UPDATES WILL BE POSTED HERE**
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Comments

Good Luck, let's hope the action goes smoothly and strongly
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Thanks, very lucidly explained, now over to actual action which I will be observing keenly, as it's in my portfolio for more than 4-5 years.
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