I just happened to see the stock with a HUGE volume bar. I drew the line from the top connecting the resistances and found it to be a BREAKOUT.
Then, I spotted another squeeze and connected the supports and resistances after which I spotted the same pattern on the RSI as well.
Next I plotted the 50 & 20 DMA and found it to be just above the breakout area of the squeeze.
The MACD also is on the verge of a crossover.
Lets observe and see if this stock turns Explosive or not ? If yes, Analysis is working great and we will spot more explosive stocks this way. If not , we will learn what went wrong.
Nice find, i love deep value stocks which could make explosive moves, volume spike came,some big lots bought once they say trader see this spike, they held back and then now grabbing all available at same price. Love these setups where 30 week ma is broken with huge volume then it drops and hold 10wma. this has potential to go to 200. It might do one more drastic drop to make sure all stock at these prices are absorbed before markup. I took 1/6th tranche position in this name today. Will wait for confirmation to add more. Nice work man, love your narratives. I have some rules that I look for but unable to make script screener in TV.
CuriousChartist
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@DeepValueFishing, Yes, we think alike. I do use the 30week MA as a strong support and 10 WMA setups to leave counters. Thank you for the kind words.
abhijeetanand93
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besides the chart the operating profit and revenue is a bit worry for this stock to take leaps and bounds in short period, what say?
CuriousChartist
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@abhijeetanand93, Absolutely spot on which is why this is strictly an educational post. Just a study to see how fundamentally weaker stocks could perform when their technicals though seem very attractive,