Buy Opportunity in AMBUJACEM (Swing/Positional)
This analysis is purely based in Price Action.
On Monthly Charts,
we can see that price has tested its ALL-TIME High thrice. After recent reversal from its Life-time High, price has taken support at a crucial level of 0.618 Fibo Level (If we draw Fibo from its 42.75 level to its life time high). From that level, it has shown a good reversal by forming BULLISH-HARAMI pattern. It can also be seen moving in a downward channel pattern after its fall from Life-time high.
On Weekly Charts,
It gave good breakout with volume confirmation and came down for re-testing the support. Previous to breakout, the upper end of channel was its resistance but after the breakout happened, it worked as a support for price. Retesting candle gave closing above that support which shows that chances of breakout sustaining as high.
Trading Strategy -
Entry can be made above the high of this week's candle (marked in the image).
SL can be either below the low of this week's candle or below the low of re-testing candle.
Targets are marked in the image.
SL needs to be trailed accordingly
On Monthly Charts,
we can see that price has tested its ALL-TIME High thrice. After recent reversal from its Life-time High, price has taken support at a crucial level of 0.618 Fibo Level (If we draw Fibo from its 42.75 level to its life time high). From that level, it has shown a good reversal by forming BULLISH-HARAMI pattern. It can also be seen moving in a downward channel pattern after its fall from Life-time high.
On Weekly Charts,
It gave good breakout with volume confirmation and came down for re-testing the support. Previous to breakout, the upper end of channel was its resistance but after the breakout happened, it worked as a support for price. Retesting candle gave closing above that support which shows that chances of breakout sustaining as high.
Trading Strategy -
Entry can be made above the high of this week's candle (marked in the image).
SL can be either below the low of this week's candle or below the low of re-testing candle.
Targets are marked in the image.
SL needs to be trailed accordingly
Comment:
Target-1 Achieved
SL Trailed now to 240
SL Trailed now to 240
Trade closed manually:
Trade closed at 242.75
Will wait for next reversal and trade opportunity
Will wait for next reversal and trade opportunity
SL kept at 201