It is been observed that the price action breaks out from a downward trending channel on hourly chart, indicating a bullish signal and dominance of buyers on movement of price action. It is also important to notice and acknowledge that the price action forms a V-Shape after a breakout. This V-shape formation also refer to the correction to previous resistance level or channel upper trend line. It provides a confirmation of the breakout (refer to Educational 04 post, link provided below)
Target: 254 Stoploss: 248 Risk Reward: 1:4
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Kindly update the Risk Reward to 1:2, Thanks to @kishore90raj to point it out. Regards
How is the risk reward 1:4. With spot @ 250, max profit is at 4/share and max loss is 2/share which gives a risk reward of 1:2. Isn't it?
NeeteshJain
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@kishore90raj, Rightly said, I mentioned it as per the chart, which I believe is wrongly drawn. I call it as Midnight Work effect :)
I shall be updating it. I appreciate your participation and interest. Thanks, Regards.