The chart is of daily timeframe. We can observe that the stock has taken support from the support trendline for more than a year on multiple occassions (more than 5). Thus this support can be considered as a strong one. However a support zone or trendline which has been tested multiple times tends to break.
So what should a trader do here?
It is best to wait for the stock to reach the support trendline and observe the candle formation. If the stock respects the suppor trendline and forms a bullish hammer right at the support trendline, then one should go on the buy side with a stoploss just below the support trendline. If the stock breaks the trendline support, then one can short it with a SL above the trendline.
So what should a trader do here?
It is best to wait for the stock to reach the support trendline and observe the candle formation. If the stock respects the suppor trendline and forms a bullish hammer right at the support trendline, then one should go on the buy side with a stoploss just below the support trendline. If the stock breaks the trendline support, then one can short it with a SL above the trendline.
Nota
As predicted, the stock formed a bullish hammer on the support trendline. So entry point would have been at 199 just at the top of hammer candle with a SL of 185.80. A 1:1 target would be more than sufficient. Stock has now moved up by 4% from entry point.Dagangan ditutup: sasaran tercapai
All targets achieved..Made a high of 220. Pure 10% in just 1 week..Cheers to those who traded this..
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.