Mothersumi - CHANGE IN POLARITY OR A BREAKOUT?
Considering monthly chart has a head and shoulder pattern. The neckline was broken the previous month. However this month is closing with a piercing pattern ( a strong one as it is closing above the mid point of the previous black candle. This will be considered as a false breakout of the neckline because i really doubt if we are expecting this good stock to go to zero (head and shoulder target in monthly).
So, If you check the weekly chart, I guess the best way to trade this would be trade on the breakout of the resistance! However, make sure it is ONLY after the breakout! Monthly chart has a bullish divergence and that too a good one so probability of the resistance breaking is very high!
For daily traders, you can try and enter in the daily timeframe on breakout of the trendline and the retest of the trendline.
NSE:MOTHERSUMI
weekly
So, If you check the weekly chart, I guess the best way to trade this would be trade on the breakout of the resistance! However, make sure it is ONLY after the breakout! Monthly chart has a bullish divergence and that too a good one so probability of the resistance breaking is very high!
For daily traders, you can try and enter in the daily timeframe on breakout of the trendline and the retest of the trendline.
NSE:MOTHERSUMI
weekly
Trade active:
Time has come, keep an eye on this stock! Check out your daily chart breakout and then a retest! and enter!