Good probability of an explosive move on either side.
There has been steady but small increase in OI since 26th Apr during which price was mostly declining. Then there was 27% increase in OI on 8-May (378 new contracts), which happened to be a green day. A closer look at volume profile pattern on the futures chart suggests buying near the support (not shown...
I love trading breakouts with lot of confluences. This long entry was a no brainer. Everything lined up as per my preference. Diagonal + Horizontal Breakout on Price as well as RSI. Good volume and a big green candle with almost no major pullbacks on lower time frames.
Entered Long 2360CE at 58 near close.
SL at .5ATR which is ~2300 on Spot and 29 on 2360CE...
Bearish divergence in play. RSI has already broken down. Price confirmation awaited. A definitive close below 7450 could lead the price back to demand zone.
Breakout candle with high volume and decent delivery (~75Cr worth). RSI too broke out above the descending trendline and last swing high of 68.25. A perfect breakout from Asymmetrical Triangle!
A decisive move above 11763 will confirm breakout on the long side.
A decisive move above 11655 will confirm breakout on the short side.
Adhere to your stops!
In last three sessions, Rs.230cr worth of shares were delivered suggesting institutional buying. Looks like some good news on this counter is getting factored in. Breakout on cards!
