Hello All, I have brought in another good set up. SRTF has broken it's consolidation range. Prior to the breakout day the volumes were building up and the breakout candle has witnessed the largest volume in the last few months which is a good sign.
Now how to trade it: First of all do not let FOMO overpower you to take a trade in haste. Observe the price for a few days(analyse it as per your setup), as per candle formed on the breakout day there is some rejection seen at higher price (the upper wick is big), it calls for just a caution sign that we need to observe the price action. The stock may come for a retest and I guess that would be an apt entry.
All said, just analyse the setup first, see how price behaves. Do not agree to me forcefully or just because I have posted an analysis. Take your own call and that would generate a lot of confidence in you.
@AbhishekHSinghCMT, Monthly chart shows all time high of 1626 which is just above current price level. I think we should wait for 1600 to cross and then a weak pullback above it, then only enter long.
Taking long near all time high is not a wise thing to do, over long term one will lose.
can anyone tell me if in a stock, the price of the stock is going up on a daily chart, but the rsi is continuously falling, what can be the expected outcomes?
Thank you
sparsh1717
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@yashchopra5262 that stock is over valued then … don’t buy until it comes down and started rise again with right rsi
@yashchopra5262, Hi Yash. This happens most of the times when the stock is in a good uptrend. Now, since RSI is an oscillator, it moves within a specified upper and lower limit, while the stock prices have no such limits. Hence it is common that the prices go up and RSI decreases (let's say 82 to 78 and then to 70) but only to again go into the overbought zone. My suggestion would be that in such cases look at the price action of the stock, minor pull backs will definitely be there but those minor pullbacks come to remove weak hands and take stock price further up. If you still feel you need more clarity, you can message me. We will take a specific example, Cheers! :)
AK1808
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@yashchopra5262 bro for reference you can look nifty on daily or weekly chart with RSI...