CautiousChartist

MAZAGON DOCK SHIPBUILD - Interesting

Long
NSE:MAZDOCK   MAZAGON DOCK SHIPBUIL LTD
The stock is moving within a large Parallel Channel almost ready to break above.

Currently a flag formation and inside that a double bottom as well as an Inv Head and Shoulder has been spotted making it even more potent for a breakout.

The volumes show a good accumulation and the MACD would turn positive from very healthy levels with price on the way up giving room for a larger up move.

Do have a look at the Related ideas.
Comment: Confession: In greed I took an entry while posting this chart at 262 knowing that the technical show a resistance of 265. The stock unfortunately hasn't triggered for the followers but the lesson is always respect the levels. Never take an entry at resistance. Allow it to cross and then buy when close above that level is assured.

If the stock closes below 241, the inverted Head and Shoulder pattern gets violated with the stop loss hit.

Comments

Yaa. Thanks for sharing. This helps. So always wait for resistance break and also volumes to confirm.
+1 Reply