MGL: Channel trade set up trading ideaMGL
CMP 853
We observe a trade pattern here where the stock traded in a channel earlier (highlighted by red colour). And now we see the stock consolidating again in a replica of previous channel.
The idea is to look for buying opportunities near channel bottom, thereby reducing our risk and increasing our reward potential.
If we look at the chart on a longer time horizon, since inception
The stock has seen a correction of 61.8% retracement from the high and is now consolidating near trend line support.
Can the stock look to conquer its lost grounds in coming months...
Only time will tell but at current levels the risk:reward ratio looks favorable to go long from long term perspective.
Plan your trade accordingly...!!!
Take care & safe trading
