SWING TUTORIAL - PODDARMENTIn this tutorial, we analyzes the reversal of NSE:PODDARMENT 's 50% decline, identifying key technical indicators that signaled a buying opportunity. We'll explore how to recognize bullish momentum and optimal entry points using chart analysis.
NSE:PODDARMENT reached its all-time high before experiencing a significant downturn. However, the stock began forming support levels at 250 in June 2023 and repeatedly retested this level until June 2024.
Key Observations:
1. Support Levels: The stock consistently found support at ₹250, indicating a potential reversal.
2. MACD Indicator: The Moving Average Convergence Divergence (MACD) line showed steady upward momentum, signaling increasing bullish pressure.
3. Consolidation: Price action demonstrated a consolidation phase, forming a strong support zone.
4. MACD Crossover: The successful crossover in June 2024 confirmed the bullish trend, creating an entry opportunity.
Trading Strategy and Results:
Based on this analysis, our entry point was established at the MACD crossover. The stock subsequently rose to its swing high levels, yielding approximately 67% returns.
Note: This case study demonstrates the effectiveness of combining technical indicators to identify bullish momentum. By recognizing support levels, MACD movements, and consolidation patterns, traders can pinpoint potential entry points.
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