The stock went into consolidation from March. Has shown wonderful volume activity in the last couple of weeks. Can easily show levels of 250-270.
SL: Depending on your risk appetite: Below Weekly BO Candle / Below Daily BO Candle / 50% of Weekly BO candle / Below 20DMA TGT: After a 10-15%+ vertical move, breakdown of 20MA on Daily chart (on a daily close basis)
BUY GUIDANCE: Never ever buy before 3PM. I have been burnt many many times. Try to buy between 3:15 - 3:30PM, later the better.
SELL GUIDANCE: Selling in Profit: Sell earlier in the session when the prices are higher, around 11AM.
Selling at SL: Give your stock a chance to recover by end of session. If it doesn't recover, sell anywhere between 3:00 - 3:30PM.
Note: I reserve the right to be wrong.
DISCLAIMER: I am not a SEBI registered analyst. Please consult your financial advisor before investing.
Great analysis. I entered this stock 4 days back after its retest near the prev.supply zone(D-TF). But today's BO candle seems weak to me.
I think only after 176/- things would be clear. Your view?
raavigeorgian
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@Minhaj_AK, I concur with you on the weakness of the BO candle. Though, yesterday's candle was weak, today's candle overcame the wick of yesterday's candle. A lot of times this counts as absorption of supply (esp near breakout areas). Yes, if it manages to close above 176 tomorrow, we are in for a long run on the upside.
Minhaj_AK
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@raavigeorgian, ya the second candle covered the wick of the previous. Let's see how it plays out now.
Madhvendra
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Please explain Buy guidance, as per you one should not buy before 3 but after 3:15, why ?? Explain it please
raavigeorgian
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@Madhvendra, Interesting question. The reason is we see lot of failed breakouts these days. If one had bought Greaves Cotton before 3.15 today, by the end of the day I'd be sitting at a loss of 5-6%. Also, buying late allows me to have a smaller stoploss.
Minhaj_AK
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@raavigeorgian, eaxctly. Lot of false BO nowadays. I took position in DFMFOODS, but now it's going into deep pullback.
Do you prefer to enter at BO-daily candle or wait for retest and break of upper shadow of BO candle to enter?
raavigeorgian
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@Minhaj_AK, waiting for retest and break of upper shadow of BO candle is a better approach, but sometimes I do look at risk reward and enter where I have a SL of 3-5%.
I think only after 176/- things would be clear. Your view?