ASHOKLEY NSE BULLISH FLAG&POLE DTF/WTF SWING/POSITIONAL ASHOKLEY NSE Stock Analysis
Trade Plan:
Entry: 50% of the total quantity at 216 DTF Close, with an additional 50% added at 242 DTF Close Price.
Stop Loss: 201
Target SWING: 264 ATH ,
Target 1: 275
Target 2: 310
Hold for a period of SIX months to TWO year or until the target 2 is reached.
Chart Pattern:
The stock had a nearly Four Month Bullish Run and now Retraced to 50% FIOBR in about a month Forming a Bullish Flag and Pole Pattern ,during the bull run it touched an all-time high (ATH) of 264. The Flag structure has been broken on the upside with a strong bullish candle a couple of days ago and a fair retracement yesterday.
Technical Indicators:
The stock’s daily timeframe (DTF) shows that the price is currently trading above the 20-day exponential moving average (EMA) and below the 50-day EMA. The EMAs are in Transition stage of alignment. A potential bullish trend in formation on the DTF/WTF timeframe.
Volume Analysis:
There has been a surge up of volumes on the buy side for a few weeks now. There Decline in the sell volume indicating a potential reversal shortly.
Prioritize Watch List:
Keep this stock in your watch list for further analysis and potential trading opportunities.
Disclaimer: This information is solely for educational and reference purposes. Trading inherently carries risks, and it’s crucial to exercise caution and conduct comprehensive research before making any investment decisions. Make sure you have a well-defined risk appetite, proper position sizing, and a stop-loss order based on your risk tolerance. Review your Portfolio periodically. Exit positions when the price closes 7-8% below your entry point or Earlier basis your Risk profile. Consider re-entering the market when the trend reverses.Before engaging in any trading activities, it is paramount to thoroughly comprehend these technical analysis concepts and conduct extensive research on the stocks you are interested in. Furthermore, consulting a certified financial advisor can offer valuable insights and guidance before making investment decisions.
Technical Analysis Concepts:
Multiple Time Frame Analysis (MTFA):
Daily Time Frame (DTF): Used for short-term analysis and identifying trends.
Weekly Time Frame (WTF): Provides a broader perspective and helps in trend confirmation.
Monthly Time Frame (MTF): Ideal for long-term analysis and trend analysis.
All-Time High (ATH): The highest price reached on a specific chart.
Lifetime High (LTH): The highest price reached over the entire chart’s history.
Stop Loss (SL): A predetermined price level at which an investment is automatically exited to limit potential losses.
Swing Trade: A trading strategy that involves holding positions for a significant period, typically few weeks to months.
Positional Trade: A trading strategy that aims to capitalize on long-term trends and position oneself accordingly.
CHART PATTERNS
Rounding Bottom Cup/Handle (RBC&H): A pattern that signals a potential reversal from a downtrend.
Breakout (BO): A price move closure above a resistance or below a support level.
Flag & Pole BO: (F&P BO) Bullish Continuation Pattern
Consolidation : Price Typically Swings between a Range for a period of Time Long or Short basis the MTFA. Breaking out of this range UPWARDS is an opportunity to BUY and DOWNWARDS is SELL opportunity.
Moving Averages:
Exponential Moving Average (EMA): A popular moving average that places more weight on recent price data.
Volume-Weighted Moving Average (VWMA): A moving average that gives more weight to high-volume stocks.
Fibonacci Retracement/Extension:
Trend-based Fibonacci Retracement: Used to identify potential support and resistance levels during re-tracements.
Trend-based Fibonacci Extension: Used to identify potential breakout levels during extensions.
