ZEEL has been falling for a long time now. Apparently in the form of a Down-Sloping Channel. Recently its rising in an upsloping channel and has given a proper breakout from the long-term downsloping channel.
Volume Profile can be used to identify potential support and resistance lines. So by using TRADINGVIEW PRO FIXED RANGE VOLUME PROFILE. I tried to identify all the important levels while the stock was falling. Moreover when volume of historical price levels is compared to current ones we can identify probable accumulation or distribution regions and enter before the big move happens.
IMPORTANT OBSERVATIONS
TARGET WITH LOGIC
1. Since the all the time high level, 600,
ZEEL
stock has been falling with very low volume. While now the volume of accumulation is too high, so there is a high chance it can easily reach the all-time high. Moreover it might even go more than that, but it depends what happens after the breakout.
THREE POSSIBLE WAYS TO ENTER
1. The SAFEST way is to enter after breakout from 285 level in 1D timeframe with stop-loss at 172(aggressive) or 110(conservative)
2. A little aggressive but still profitable entry can be at CMP at around 220-240 level. Because it took support at the lower trend line of the up-sloping channel.
3. The BEST way is POSITION SIZING , You can enter partially at CMP and more after breakout happens above 285 level with confirmation. In both cases it is better to put a conservative stop-loss.
**STOP-LOSS should be trailed as per your strategy. One of the best is to trail with Moving Average in 1D timeframe with ATR(Average True Range) as a buffer.
EXIT
Sometimes we have to exit before target is reached if there is bearishness. Following can be the clues of bearishness-:
1. If there is bearish candlestick pattern in 1D timeframe, stop-loss can be trailed to a nearby support level.(Like Candle Low)
2. If there is RSI Divergence in 1D timeframe, better to exit at close of 1D since afterwards there can be long consolidation or reversal.
3. If the trailing stop-loss is hit, please exit
4. If you want , you can keep a target level lower than the all time high and exit at Target. Possible levels are 400 and 500.
**I WILL POST NECESSARY , SIGNIFICANT CHANGES IN THIS THREAD LIKE ADDITION TO POSITION, EXIT SIGNALS ETC.
TO AVOID MISSING OUT ON UPDATES PLEASE REMEMBER TO LIKE AND FOLLOW THE POST AND MY ACCOUNT.
**YOU CAN TURN ON NOTIFICATION TO BE UPDATED OF CHANGES
**ANY COMMENT ON THE ANALYSIS WILL BE HIGHLY APPRECIATED.
ZEEL
Volume Profile can be used to identify potential support and resistance lines. So by using TRADINGVIEW PRO FIXED RANGE VOLUME PROFILE. I tried to identify all the important levels while the stock was falling. Moreover when volume of historical price levels is compared to current ones we can identify probable accumulation or distribution regions and enter before the big move happens.
IMPORTANT OBSERVATIONS
- Current Volume is very high compared to previous volume when the stock was falling. This signifies current region is important and breakout from this region will give a strong up-move. Moreover current movement is in the form of up-sloping channel so definitely an accumulation is taking place.
- Above 285 level the volume at prices is very very low which signifies insignificant resistance levels. That means once ZEEL breaks out of 285 level we should expect a strong rally with less and weak obstacles(resistance).
TARGET WITH LOGIC
1. Since the all the time high level, 600,
ZEEL
stock has been falling with very low volume. While now the volume of accumulation is too high, so there is a high chance it can easily reach the all-time high. Moreover it might even go more than that, but it depends what happens after the breakout. THREE POSSIBLE WAYS TO ENTER
1. The SAFEST way is to enter after breakout from 285 level in 1D timeframe with stop-loss at 172(aggressive) or 110(conservative)
2. A little aggressive but still profitable entry can be at CMP at around 220-240 level. Because it took support at the lower trend line of the up-sloping channel.
3. The BEST way is POSITION SIZING , You can enter partially at CMP and more after breakout happens above 285 level with confirmation. In both cases it is better to put a conservative stop-loss.
**STOP-LOSS should be trailed as per your strategy. One of the best is to trail with Moving Average in 1D timeframe with ATR(Average True Range) as a buffer.
EXIT
Sometimes we have to exit before target is reached if there is bearishness. Following can be the clues of bearishness-:
1. If there is bearish candlestick pattern in 1D timeframe, stop-loss can be trailed to a nearby support level.(Like Candle Low)
2. If there is RSI Divergence in 1D timeframe, better to exit at close of 1D since afterwards there can be long consolidation or reversal.
3. If the trailing stop-loss is hit, please exit
4. If you want , you can keep a target level lower than the all time high and exit at Target. Possible levels are 400 and 500.
**I WILL POST NECESSARY , SIGNIFICANT CHANGES IN THIS THREAD LIKE ADDITION TO POSITION, EXIT SIGNALS ETC.
TO AVOID MISSING OUT ON UPDATES PLEASE REMEMBER TO LIKE AND FOLLOW THE POST AND MY ACCOUNT.
**YOU CAN TURN ON NOTIFICATION TO BE UPDATED OF CHANGES
**ANY COMMENT ON THE ANALYSIS WILL BE HIGHLY APPRECIATED.
ZEEL
If there is a RSI Divergence in 1W timeframe , not 1D.
My apologies.