Breakoutzone
Tata Consumer breakoutTata Consumer - Short Term Range Breakout Idea
When the price crosses the range, it is likely to continue in that direction. Intraday traders then use the breakout as the entry point. In simple words, the opening range breakout strategy means taking a position when price breaks above or below the previous day's high or low
Tata Consumer Products is an Indian fast-moving consumer goods company with its corporate headquarter in Mumbai, and is a part of the Tata Group. Its registered office is located in Kolkata. It is the world's second-largest manufacturer and distributor of tea and a major producer of coffee.
Possibility of a breakout in ADVENZYMESPossibility of a breakout in ADVENZYMES
Entry: After breakout confirmation
Targets: 300, 325 & 350
DISCLAIMER: The ideas shared are only for educational purpose. The markets are very volatile, so plan your trades accordingly. Please trade with stop loss. I am not SEBI registered.
Powergrid outperforming NIFTY 500 benchmark1. Powergrid breaking out of consolidation. This looks to be typical Wyckoff re-accumulation tilted to upwards.
2. Its also out performing the NIFTY 500 Index, which means it has high RS.
3. Short term price target of 25 % is achievable and near term target of 40% is possible.
BREAKOUT vs FAKEOUTTrading breakouts is a most profitable trading strategy that involves buying or selling an asset after a long period of consolidation.
Confirming breakouts before jumping into a trade is the key task to become a successful breakout trader.
Now lets see about the important key points to consider to confirm such valid breakouts
TYPES
There are different types of breakouts including
1)Trend line breakouts (diagonal form of S&R) ,
2)Horizontal price breakouts,
3)Pattern breakouts (double top, double bottom & other)
4)All time highs/lows breakouts,
5)Fib level breakouts etc.,
The support and resistance lines that are drawn at potential breakout points "should be seen as area/zones instead of fixed lines" .
BREAKOUT :
A breakout is when the price of the stock breaches a support or resistance levels that has previously formed followed by a strong candle close.
FAKEOUT :
A false break or fakeout, as the name implies, is any move above a resistance or below a support followed by a reversal that fails to close above or below the broken level.
WHEN THE FALSE BREAKOUT HAPPENS :
A false breakout happens when there are no enough buyers or sellers to continue supporting the stock towards the breakout direction.
In the examples above,the upper false breakouts happened because there were no enough buyers to continue pushing the price higher & tends to reverse similarly viceversa for the lower false breakout.
VARIOUS SCENARIOS OF FALSE BREAKOUT
POINTS TO REMEMBER
1)False breakouts can be avoided by waiting for strong candle closure above or below the levels to confirm the breakout strength.
2)Avoid the breakouts with non-stop parabolic movement (without pullback or retest).
3)Instead of using a single line as support or resistance, it is better to have an area/zone that covers all shadows in previous touches.
4)To take entry, always wait for the zone to breach by the candle closing confirmation combined with price action.
Hope it was helpful to you,
Happy Learning & Profit making :)
Thanks & Regards
Divyaapugal
Lambodhara Textile | C&H in formation | BO Awaited | 25%-90%NSE:LAMBODHARA
Cup and Handle Pattern under formation in Weekly Charts.
Awaiting Breakout above 96-98 Zone WCB
Buy after BO
Target : 122 - 149 - 175
SL : 72
Golden CrossOver in Weekly Chart
RSI > 55
High Risk High Return Bet Similar to Ginni Filaments (sharing the Link to Ginni charts below)