FIVESTAR - Breakout from falling Channel

Breakout from Falling Channel with Volume Reversal in Five-Star Business Finance

FIVESTAR

📈Pattern & Setup:

Five-Star Business Finance is showing a classic falling channel breakout attempt on the daily chart. The stock witnessed a strong reversal candle near the lower boundary of the channel, followed by a surge in volume — a possible sign of trend reversal.

The stock had been in a consistent downtrend since June, but the recent high-volume rebound from the 480–500 zone signals accumulation. A sustained close above 550 would confirm the breakout and open upside potential toward the previous supply zone.

📝 Trade Plan:

Entry: 535–540 range looks good for accumulation.

🚩Stop-Loss: 495 (below the recent low).

🎯Targets:

Target 1 → 610 (near-term resistance).
Target 2 → 670 (previous structural resistance zone).

💡Pyramiding Strategy:

1. Enter first lot around 535–540.
2. Add above 555 breakout confirmation, trail SL to 510.
3. Add final lot above 610, trail SL to 555.

Hold patiently for a trend continuation toward 670 if the volume sustains.

🧠Logic Behind Selecting this Trade:

The setup reflects a potential end of the downtrend phase after a long consolidation. The sharp recovery from 480–500 levels with rising volume hints at fresh accumulation by smart money. Once the stock breaks above 550 with strong momentum, it could mark the beginning of a short-term trend reversal rally.

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🔴Disclaimer:

This is not an investment advice. Always do your own due diligence before making any trading or investment decision.