As seen PFC has formed a Double Top Pattern in the hourly chart. It has recently given a breakout in the last session. Also, three out of the last five candles have been big red candles indicating weakness in the shorter term. Particularly in the last session where open = high.
Double Top Pattern is bearish reversal pattern, made of two consecutive tops. It indicates that the stock has reached a resistance level and is facing difficulty moving higher, thereby positioned for an downward move.
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book profits
Comments
vanathi
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Well done !
aks85
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Hi you are right in the sense that it has retraced 38.2% and is a good time to go long (buy on dips) and is the wiser thing to do also i.e to trade in the direction of the larger trend. My thought process while entering this setup was the formation of the double top pattern which is a counter trade setup indicating a bearish reversal for the shorter term if not the longer time frame. Also, as mentioned in the idea that I felt that the down move was quick with three big red candles and also open= high indicating weakness in the shorter frame. This setup in not suitable for a conservative trader as it is a counter trend trade and a downtrend has not been established, but it is good short for a aggressive trader for small profit.
ArjunTurakhia
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Hi. What would be the negation point foe this view? As it just retraced to 38.2% of its rally & bounced back from there. Looks like a good long.