The stock is at multiple support : -
Previous top support ,
Trend-line support,
Fibonacci support, all in all prices are at confluence of support and the candle formed today has long lower shadow.
Think about it, what is the job of support - To push prices back higher and it keeps doing its job till it gets broken.
So my observation here is it may be a good trade opportunity but currently its not, so what we can do is that we can put this stock into our track list and look for further confirmation - if breakout then short if pullback than long.[ being on support ,probability of pull back is on high side]
Previous top support ,
Trend-line support,
Fibonacci support, all in all prices are at confluence of support and the candle formed today has long lower shadow.
Think about it, what is the job of support - To push prices back higher and it keeps doing its job till it gets broken.
So my observation here is it may be a good trade opportunity but currently its not, so what we can do is that we can put this stock into our track list and look for further confirmation - if breakout then short if pullback than long.[ being on support ,probability of pull back is on high side]