HDFC LIfe on a Bullish reversal.. Volume Price Analysis
An example of how we can use Volume as a secondary confirmation to Price action.
Arrows point out to the Volume analysis of the underlying price action
1) Big Red Bar and the 1st arrow signals Smart Money' loading up their warehouse signaling start of a consolidation sideways..
2) 2nd arrow points out the anomaly the large Seller volume is not reflected in the underlying price movement depicting sellers exhaustion and inability to take the market further down
3) There is one more retest of the low with one big Red candle but the low of 657 didnt break.
4) 1st Bull move on 2nd June with Buy VOlume accompanied by equal big move in price is seen on 2nd June. Signaling smart money has completed the purchase and now ready to trigger the big move up.
5) Break out happens on 8th June with above average volume and decent candle spread
6) Low volume test on 14th June confirming the Buyers can now take this up.
7) 15th June - Move up starts.
My Position - Took entry on completion of Test at 682.
Using FIbbo for my Exits with
Target1 - Partial offload at 1.33 Fib level at 774 and
Target2 - Remaining at 1.618 level - 889.5
Arrows point out to the Volume analysis of the underlying price action
1) Big Red Bar and the 1st arrow signals Smart Money' loading up their warehouse signaling start of a consolidation sideways..
2) 2nd arrow points out the anomaly the large Seller volume is not reflected in the underlying price movement depicting sellers exhaustion and inability to take the market further down
3) There is one more retest of the low with one big Red candle but the low of 657 didnt break.
4) 1st Bull move on 2nd June with Buy VOlume accompanied by equal big move in price is seen on 2nd June. Signaling smart money has completed the purchase and now ready to trigger the big move up.
5) Break out happens on 8th June with above average volume and decent candle spread
6) Low volume test on 14th June confirming the Buyers can now take this up.
7) 15th June - Move up starts.
My Position - Took entry on completion of Test at 682.
Using FIbbo for my Exits with
Target1 - Partial offload at 1.33 Fib level at 774 and
Target2 - Remaining at 1.618 level - 889.5
Trade active:
Retest done at 657 levels.. Still retaining the same targets..
Trade active:
ADX indicating momentum change.. Expect this upmove to sustain
Comment:
Target1 Hit - Partial Offload done at 774. See the levels held :) Exactly reversed at 774
Trade active:
Now the Stock will head for 2nd Target after a brief correction. holding my portfolio for 889.