So the concept is:
ENTRY-:
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 volume 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.
STOP-LOSS-:
Since the consolidation was within 60, so stop-loss can be set around 60 level with some buffer using ATR(Average True Range)
UFO
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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 trend lines. Both have been tested at least 3 times. Currently both these trend lines have been broken. Secondly, we see an accumulation after fall which seems like the consolidation before high momentum breakout.
- Looking at the Volume Profile, we find the volume near 116-60 level is extremely high as compared to historical volume at previous price levels. Secondly, all the green (buying volume) is very high and red(sell volume) is very low. Which further confirms this as an accumulation region.
i:e During buy volume=high, then price retraces with low volume and then again high volume buy-----> this forms a closed accumulation region.
- Since the historical volume 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.
ENTRY-:
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 volume 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.
STOP-LOSS-:
Since the consolidation was within 60, so stop-loss can be set around 60 level with some buffer using ATR(Average True Range)
UFO
**ALL UPDATES ON ENTRY WILL BE POSTED HERE. TRAILING STOP-LOSS, EXIT AND CHANGES IN TARGET LEVELS AND ANY OTHER UPDATES WILL BE POSTED HERE**
**COMMENT YOUR SUGGESTIONS**
**LET ME KNOW IF VIDEO IS BETTER OR IF THIS WAS SHORT OR LONG POST**
**IF YOU LIKE THE POST GIVE A THUMBS UP AND FOLLOW THE POST AND MY ACCOUNT FOR UPDATES**
**WILL SOON COME OUT WITH A EDUCATIONAL POST ON VOLUME PROFILE**
Please refer to