The stock has been trading in the range for past 200+ days and has started to show the signs of strength and these are:
1. A quick bounce from the support taking out the short term resistance of 1070. 2. Volumes have stated to increase showing the bullish sentiment among buyers. 3. The gap between 21-day and 50-day EMA has been reducing.
Why this time the breakout can be successful?
1. Resistance has become week as being tested multiple times. 2. A rapid recovery from the lows that too with large volumes. 3. By the time the stock reaches resistance EMA may complete the crossover which further adds odds in our favour.
Possible Scenerios during a breakout:
Scenerio No. 1. Break and retest: Here, in this scenerio stock does not wait near the resistance rather quickly takes out the resistance and comes back for the retest and when it breaks the High of the BO or alert candle a buy SL-M shall be waiting for your entry into the stock and SL shall be placed just below the recent low the stock has established. Scenerio No. 2. Halt near the resistance: In this case the stock may conslidate near the resistance for a few days in a very tight range, which is a typical case of high reward low risk strategy. Here entry can be made as soon as the stock crosses the narrow consolidation near the resistance and the SL just under the same narrow range shall be placed.
@abhayverma071, I took it at a triangle pattern breakout
abhayverma071
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@atifsharif7865, Sir, i had analysed weekly Cup pattern breakout.
manoj3246
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1. Working in expanding channel on monthly chart and monthly volume decreasing. 2. Season is off so earning may effected. 3. On daily chart multiple rejection at 1130-1140. 4. Triple top can be there.
Thank you for your valuable contribution to the TradingView community and keep up the good work!
Good clear chart and idea with good clear explanation.