TVSMOTORReasons for considering a long position on TVS Motor:
1. Price at Support Zone: The daily horizontal support zone indicates a level where demand has historically been strong, which could push the price higher from here.
2. Above 200-Day Moving Average: Trading above this long-term moving average suggests a bullish trend, as it’s a widely-watched indicator of a stock’s overall direction.
3. Positive Relative Strength Against Nifty: Outperforming the Nifty shows that TVS Motor has stronger momentum, a good sign of investor confidence in this stock specifically.
4. Nifty Auto at Support Zone and 200-Day Moving Average: The sector’s overall strength at support, combined with it holding above the 200-day moving average, adds a supportive macro backdrop.
Waiting for confirmation with a CHOCH (Change of Character) on the 1-hour timeframe is a solid approach. Here’s a structured plan based on that:
1. Wait for CHOCH on 1-Hour: The CHOCH would confirm a potential shift in market structure, signaling the beginning of bullish momentum. This adds more reliability to the trade setup.
2. Entry on Retest / FVG / IFVG:
• Retest: After the CHOCH, a retest of the breakout zone could provide an optimal entry, ensuring the breakout holds.
• Fair Value Gap (FVG): If an FVG appears within this structure, entering here could capture the shift in momentum at a lower-risk point.
• Imbalance Fair Value Gap (IFVG): An entry on an IFVG could further refine your risk-to- reward ratio, especially if market liquidity fills these gaps.
