1. FOR WHOM AND MY METHOD IS A LITTLE NEW OR BLURRY . I WILL SOON PUT UP AN EDUCATIONAL POST WITH DETAILS AND EXAMPLES. WE CAN HAVE A SERIES OF DISCUSSIONS THERE TOO. DO FOLLOW MY ACCOUNT TO GET NOTIFIED.
2. Do ask your questions in the comments if any.
In we can compare the levels of at different price levels historically and current price levels to try to find the strength of current move and strength of the resistance it might face.
If the up-move (currently) and its previous accumulation's is very high compared to the of its historical it means we have more strength in up-move and weak resistances can be crossed.
1. Stock was declining for a while.
2. Gave a nice or triangular pattern breakout and started rising.
3. Recently accumulated over a range and then gave a breakout.
4. Has retraced a little with low and thus has given us an opportunity to enter with confirmation.
5. The of the accumulation level is too high compared to the at its all time high, which shows its a weak and there is a high chance it will be broken.
TARGET WITH LOGIC:
Since all-time-high has a weak resistance we might make a target farther than the all time high.
Since the up-move is strong and accumulation has nice . So a Fib Extension target of 168% makes sense since , since the rally started the recent accumulation has more than ever before so the current expected up-move should be more than the previous rally. So 168%
Of course the best entry would have been after breakout of the pattern with confirmation but I had not come across the stock at that time due to my negligence.
(See my other recent posts, some of them have recently given breakout with good opportunities)
ENTRY and STOP-LOSS
Entry at CMP above 90 level with a conservative stop-loss at the support of accumulation which is at 65 would be better than an aggressive stop-loss.
Enter only if next time the entry price gives a reasonable RR ratio as per your strategy.
Keep trailing stop-loss. One of the ways is to use Moving Average with (14) (ATR) as buffer.
IF there is bearishness near the all time high, a trailed stop-loss should be at place and obeyed.
Since the target is above all time high. Its a provisional target level. So it doesn't make sense to exit at target rather hold on to it as much as possible and keep trailing stop-loss. Following can be used as exit signals or bearishness signals.
1. If there is pattern in 1W timeframe, stop-loss can be trailed to a nearby .(Like Candle Low)
2. If there is Divergence in 1W timeframe, better to exit at close of 1W since afterwards there can be long consolidation or reversal.
3. If the trailing stop-loss is hit, please exit
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