- NSE:UFO had been falling till Mar 2020 since 2015. The fall was steady during 2015-2018. But since 2018 we saw a relatively rapid fall till Mar 2020.
- Since Mar 2020 , it kind of went into a consolidation between 116 and 60 levels.
- Now let's look at the structure. The entire fall can be condensed into a downsloping channel. There are two upper . Both have been tested at least 3 times. Currently both these have been broken. Secondly, we see an accumulation after fall which seems like the consolidation before high momentum breakout.
- Looking at the , we find the near 116-60 level is extremely high as compared to historical at previous price levels. Secondly, all the green (buying ) is very high and red(sell ) is very low. Which further confirms this as an accumulation region.
i:e During buy volume=high, then price retraces with low and then again high buy-----> this forms a closed accumulation region.
- Since the historical is low, There is very less barrier or resistance, which means once this breaks out, the momentum can be expected to be smooth and high.
Whether this really will be an accumulation will be confirmed by the breakout direction.
A daily close breakout above 116 level will confirm.
So entry at around 116, nevertheless, the entry bar should be green and close above 116.
TARGET AND Exit-:
Since the historical is low, it does make sense to assume that when the stock price moves, it can easily pass through without much resistance.
Imp Level-: 300 and 500 (Since these were historical consolidation levels)
So for now the target is all time high. But I would watch near 300 and 500, will trail my stop-loss and if hit, will exit.
Since the consolidation was within 60, so stop-loss can be set around 60 level with some buffer using ATR( )
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