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Breakouttrading

EURUSD: Possible Breakout of Downtrend Line?On the 1-hour chart for EUR/USD, the price is currently testing a descending trendline that has served as dynamic resistance over the past few days. After bouncing off a support level around 1.0453, the pair displays signs of strength and is nearing a crucial decision-making zone. The horizontal resistance at 1.0490 aligns with the trendline, and breaking through this area could signal a potential short-term bullish reversal. A potential buying opportunity may arise if EUR/USD successfully breaks above the downtrend line and subsequently retests the broken level, which could act as support. Expected Pattern : Breakout followed by Pullback. Buy Scenario : Confirmation: A breakout above 1.0490 with a strong close, followed by a pullback to retest this level as support. Entry Point: During the pullback, near the 1.0490 area (previous resistance potentially turning into support). Stop Loss: Set below 1.0475 to protect against false breakouts. Primary Target (TP1): 1.0560, a horizontal resistance (approximately 70 pips gain). Secondary Target (TP2): 1.0600, a psychological level and key resistance (approximately 110 pips gain). Alternative Scenario: Bearish Continuation If the price fails to surpass the 1.0490 resistance and drops below 1.0475, a retest of the support at 1.0450 is probable. Possible Sell : Close below 1.0453, targeting 1.0430 or lower. In Summary The primary scenario indicates a bullish outlook if EUR/USD breaks and holds above 1.0490, with potential targets at 1.0560 and 1.0600. However, traders should keep an eye on price behavior at the resistance level, as a rejection may trigger renewed selling pressure. Disclaimer: 74% of retail investor accounts lose money when trading CFDs with this provider. Consider whether you understand how CFDs work and if you can afford the high risk of losing your money. Past performance is not indicative of future results. Investment values may fluctuate, and you may not recover your initial investment. This content is not intended for residents of the UK.
Long
by Marketscom
1
BEML Ltd: Bullish Breakout AnalysisUpdate: BEML secured a ₹136 crore order from the Ministry of Defence, strengthening its fundamentals and boosting investor sentiment. Technical Highlights: Breakout Zone: Stock broke above ₹4,500 resistance with strong volumes, confirming bullish momentum. Key Levels: Support: ₹4,300 | ₹4,040 Resistance: ₹4,762 | ₹4,995 | ₹5,205 | ₹5,472 (Fibonacci target). Trend: Higher highs and higher lows indicate a sustained uptrend. Momentum: RSI in overbought territory suggests strong buying pressure, with potential minor pullbacks. Outlook: The technical breakout, combined with a solid fundamental catalyst, positions BEML for a potential rally toward ₹5,200–₹5,470. A stop-loss below ₹4,300 is advised for risk management. Disclaimer: This is for educational purposes only. Please consult a financial advisor before investing.
NSE:BEMLLong
by AngshumanSaikia
Breakout Alert: High-Potential Long Trade Setup in IXIGOIt highlights a descending channel pattern in IXIGO, a common technical analysis formation where price moves between two parallel trendlines sloping downwards. Key Points: Resistance (Red Line): The upper trendline acts as a resistance level where the price faces selling pressure. It has been tested multiple times, confirming its validity. Support (Green Line): The lower trendline serves as a support level where the price typically finds buying interest. This line also has multiple touchpoints, validating its significance. Breakout Attempt: The latest candle shows a strong upward move (+8.87%), attempting to break out of the resistance zone. Such a breakout might signal a potential trend reversal if it sustains above the channel. Trading Strategy: Bullish Case: If the price sustains above the resistance trendline with good volume, it could indicate the start of an uptrend. Targets can be set using Fibonacci retracement or previous swing highs. Risk Management: Place stop-loss below the breakout candle for long positions. Adjust the stop loss upward as the price progresses to secure profits
NSE:IXIGOLong
by TradZoo
Pokarna may blast tomorrowNSE:POKARNA has shown strong momentum with a breakout above key resistance levels. Currently trading at ₹1,223.55, with a 9.8% breakout target in sight. - Breakout from a consolidation range with strong bullish candles. - Significant volume spike supporting the breakout. - Resistance: ₹1,353.80 - Support: ₹1,195.45, ₹1,149.38 Trade Setup: - Entry: ₹1,225-1,230 (near CMP or on dips). - Stop-Loss: ₹1,190 (below support). - Targets: - Target 1: ₹1,353.80 - Target 2: ₹1,420 Risk Management: Position size accordingly, as markets can be volatile.
NSE:POKARNALong
by Trendxinc
Reading a chart is not a very difficult art. Today we will try to understand how to read the charts how to make assumptions based on the same. First thing that one must understand that it is not a rocket science. One has to be creative, attentive and a sort of meditative. Albert Einstein once said that "it is not that I am smart but I stay with the questions much longer". For reading the chart one must ask questions to the chart and observe the answers by reading between the lines and understanding the patterns. Everything has patterns. Even time is not linear even as per Vedas the time is cyclical. That's why we have God (Generator, Operator and Destroyer). If time is cyclical the cycle is a pattern. We say that history repeats itself. Stock market legend Jesse Livermore once said "All through time, people have basically acted and reacted the same way in the market as a result of greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis. Patterns repeat because human nature hasn’t changed for thousands of years” If you want to know more about Jesse Live more you can watch the movies like The American Clock, The day the bubble burst or The bucket Boy. Thus by asking the question to the chart and by observing the chart and searching fo the answers by noticing the patterns, historic layouts, supports, resistances and applying certain amount of basic maths and common sense one can come to know about the risk is to reward ratio in buying a stock or a derivative. 'Breakout' or Breakout level is what we are searching for. The coveted breakout may happen or it may not even after calculations and chart study and fundamental analysis. So if break out fails you must have a stop loss to protect your capital. If breakout actually happens you let your money work and reap the benefit. After having understood this basic concept let us try to analyse the chart of IDBI Bank for the purpose of education. I will mention below my observations of the same. The purpose of this analysis is educational and one must not treat it as a buy or sell call. The First thing that I observe here is that the stock is moving in a particular parallel channel. Many of the stocks do move in channels. There are different kind of channels and this one is a parallel channel. In a parallel channel channel top works as a resistance, Channel bottom works as a support and mid channel might work as a support if stock price is above it. The same mid channel will work as a resistance if the stock price is below it. Thus we get a Long term target 120 which can be the channel top. We get a long term support 75 which can be the channel bottom. The point to note is that 75 level has been supporting this stock since March 24. The stock has bounced from there many a times as indicated in the chart. In this particular case mid channel will work like a resistance. The real breakout might happen after we get a closing above it at the levels of 91.6. CMP of the stock is 85.12 but before we reach 91.6. There is a scope of trend line breakout if the stock closes above 87.6. Thus 91.6 is my first target. The closing above 91.6 can also be treated as a compounding point for stock's further journey. You can also think of takin partial entries at 87.6 and 91.6. If I am a Short term trader, I can even trade the stock for the target of 91.6. After closing above 91.6 further targets can be 96, 99, 101, 105, 107 and finally 120. Partial profit booking can also be done at these various levels. Trailing stop loss can also be increased step by step as the stock moves northwards. You can never be overconfident in your analysis. Stock market is a graveyard of lot of over confident people. The design of stock market is such that it transfers money from the impatient to the patient. Thus you need a stop loss in case your break out fails. In this particular case I can keep my stop loss at either at a closing below 83 as there are Mother and Father lines (50 and 200 days EMA) at this point. To know more about stuff like parallel channel, Mother Father and Small child theory and much more interesting ways to make your money work through Techno-Funda investing. You can read my book The Happy Candles Way to wealth creation. The book is available on Amazon in (Paperback) and Kindle version (E-Version). The book has potential to become your handbook or an investment guide. If I am little bit more risk taking person I will keep the stop loss at closing below 75 in this case as 75 has historically provided a great support to the stock. Additionally now it has also become more powerful by becoming a channel bottom support (Importance of channel bottom support is discussed earlier in the article). A person who looks at the risk reward ratio can see that down side risk is Rs.2 or Rs.10 considering my risk taking ability and upside potential is around Rs 35. If you consider 120 as a channel top. So incase I keep my stop loss at 75 and my long term target at 120 my risk reward ratio can be 1:3.5. In case if I keep my target at 99 and my stop loss at 83 my risk reward ratio is 1:7 or so. So the risk reward ratio is a dynamic number which will keep changing depending on your target and risk taking ability. You need to calculate it personally. There can not be a universal risk reward ratio. As different people will keep different targets and different stop losses. Once you have determined your target and stop loss adhere to it strictly. In case of stop loss you have to be particularly strict. In case of target you can let the stock fly even higher than your target but you have to adhere to a trailing stop loss strictly. My book about which I have a description earlier talks at depth about stop loss and trailing stop loss. I sincerely hope that this write-up will help you in reading the charts, understanding the importance of charts and becoming a better investor. Disclaimer: The above information is provided for educational purpose, analysis and paper trading only. Please don't treat this as a buy or sell recommendation for the stock. We do not guarantee any success in highly volatile market or otherwise. Stock market investment is subject to market risks which include global and regional risks. We will not be responsible for any Profit or loss that may occur due to any financial decision taken based on any data provided in this message.
NSE:IDBILong
by Happy_Candles_Investment
ARKK potential Breakout to 66 - 70s before new year !After an impressive climb, ARKK’s price has paused near $56.21, forming a classic bull flag pattern. This is a textbook signal: a strong initial rally followed by sideways consolidation, often hinting at continuation in the direction of the previous trend. The trendlines reveal the ETF is compressing, building energy like a coiled spring. The moving averages are lined up perfectly for bulls. The short-term yellow moving average is trending well above the long-term blue one, confirming the strength of the upward momentum. This tells us the battle-tested bulls are still in control, with the bears retreating to lower ground. The RSI is sitting at 70.14, signaling strength. While some might see it as "overbought," seasoned traders know this is where momentum players thrive. The ETF’s ability to hold this level without significant pullbacks shows strong buying interest from institutions and retail traders alike. It’s like a crowd gathering behind the archer, ready to release the bowstring. The MACD histogram is glowing green, reinforcing the narrative that buyers are still active. As the histogram bars hold steady, there’s no sign yet of the bears staging a comeback. At this point, ARKK is testing the $58.38 resistance level, a successful breakout could launch ARKK toward its next resistance levels at $61.85 and $67.20, offering a significant upside for traders who act decisively. Target Levels: First target: $61.85 Second target: $67.20 Stop-Loss: Place a stop-loss just below $52.32 , the key support zone, to protect against sudden reversals. As an options trader, I’ve entered the following positions: ARKK December 20, 2024, $70 call at a premium of $0.12 (open). ARKK December 20, 2024, $66 call at a premium of $0.24 (open).
AMEX:ARKKLong
by EssieQuantumTrader
GJ Breakout trade, Asian sessionToday's trade was a GJ short, in the Asian session at approx 00:30. The Price broke out of the range I set up and took entry on Close with SL above the breakout candle. However, before entering trade, I knew it was more of a risky trade with a lower probability of winning. When you look left for the target, there are no clear targets to aim for. The first target was right near the entry, but also wicked down further into the 2nd target. As a result not allowing for a clean set up. As the trade could have easily reversed in the other direction which it did after a while. Prior to entering the target, I knew I had to watch it closely and be ready to exit the trade at any point, as it may wick down into target range, but also reverse back up, as when you look left that is what occurred as well. As a result, this trade did not hit my TP, but had to be managed and closed with profit earlier. Always have to remind yourself markets repeat themself, but can also be unpredictable, better to take a small profit and survive for the next day. This is for education purposes only, not financial advice.
by GurjotFX
BTC/USD: Ready to Break the Channel and Soar to 100K Bitcoin (BTC) has been trading within a well-defined descending channel for the past few weeks, showing signs of consolidation. However, several key indicators suggest that BTC is preparing for a breakout, potentially leading to a significant rally that could push the price toward the highly anticipated $100,000 level. Bitcoin is on the verge of a significant breakout. All signs point to the beginning of a new bullish cycle, with a realistic path toward $100,000. Traders should watch closely for a decisive move above the channel, as this could mark the start of the next major leg up in BTC's journey. Risk Management: As always, set appropriate stop losses and manage risk carefully. Volatility is inherent in crypto markets, and while the outlook is bullish, it’s essential to stay disciplined. DISCLAIMER: This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading
Long
by cyhym