The stock has been forming a clear Ascending Triangle pattern since the last few months, which is a strong bullish continuation setup. the price action has compressed beautifully, setting up a prime opportunity for a momentum trade.
Key Technical Observations:
The Resistance : There is a rigid supply zone right at the 504 - 505 level. The price has tested this area multiple times since early May and is currently pressing hard against it.
Dynamic Support: Buyers are aggressively stepping in at higher prices, as seen by the clear ascending trendline from the mid-April lows. This indicates strong accumulation.
Volume Contraction: As the price gets squeezed into the apex of the triangle, volume has normalized. We are waiting for a significant volume expansion to confirm the next directional move.
The Trade Plan:
The 4-hour chart provides the broader structure, but the actual execution relies on catching the momentum on the lower timeframes (5m/15m).
Long Scenario (Breakout): Wait for a decisive candle close above 505 on strong volume. If it breaks out and sustains, we can look to ride the intraday momentum upward.
Rejection Scenario: If the price prints a strong bearish reversal candle at the 504-505 zone, we might see a quick scalp opportunity back down toward the ascending trendline support.
Levels to Watch:
Entry Alert: Break & sustain above 504.50 - 505.00
Immediate Support: Ascending trendline
Invalidation: A 4H close below the ascending trendline invalidates this bullish setup.
Disclaimer: This is for educational purposes only. Always manage your risk and wait for proper volume confirmation before entering.
Key Technical Observations:
The Resistance : There is a rigid supply zone right at the 504 - 505 level. The price has tested this area multiple times since early May and is currently pressing hard against it.
Dynamic Support: Buyers are aggressively stepping in at higher prices, as seen by the clear ascending trendline from the mid-April lows. This indicates strong accumulation.
Volume Contraction: As the price gets squeezed into the apex of the triangle, volume has normalized. We are waiting for a significant volume expansion to confirm the next directional move.
The Trade Plan:
The 4-hour chart provides the broader structure, but the actual execution relies on catching the momentum on the lower timeframes (5m/15m).
Long Scenario (Breakout): Wait for a decisive candle close above 505 on strong volume. If it breaks out and sustains, we can look to ride the intraday momentum upward.
Rejection Scenario: If the price prints a strong bearish reversal candle at the 504-505 zone, we might see a quick scalp opportunity back down toward the ascending trendline support.
Levels to Watch:
Entry Alert: Break & sustain above 504.50 - 505.00
Immediate Support: Ascending trendline
Invalidation: A 4H close below the ascending trendline invalidates this bullish setup.
Disclaimer: This is for educational purposes only. Always manage your risk and wait for proper volume confirmation before entering.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.