The stock moved out of the triangle pattern on the hourly chart, made a high of 525.65 and has been consolidating since then.
On the hourly chart the price action is indicating that the stock might pullback below 521 level before continuing the up move.
Reasons being: 1. Lot of volume effort at the 521-526 level with little action on the upside. 2. Secondly, stochastics has been showing signs of divergence.
I would rather wait for the pullback and confirmation signal before buying near 505-515 zone.
#One has to be careful as the stock pulls back deep into the patterns or the ranges from which it breaks out (means wider SL needed if buying).
This is just an analysis and not an investment advice. Analysis on hourly time frame means it is for short to medium term.
Thanks
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Touched the upper end of the mentioned pullback zone 505-515
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Post entry analysis:
Stock moved on expected lines. It pulled back to break level; went deep into the break pattern as warned and reached in to 505-515 zone. It gave a bullish entry pattern along with divergence and bounced sharply after that.
521 target is already hit, expect some pullback again before the upmove continues.
Always follow price action, indicators are just for added confirmation only.
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Learn how to trade pullbacks
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Hit the target
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