4th December 2022 - Chart of the Day!

CHART OF THE DAY

• In this series I will share my personal favorite breakout chart. The one which fits my setup the most & I like.

• A little disclaimer in the start - Just because I like anything doesn't mean you should go & buy it. I might be completely wrong in this. My intention here is just to let you know my personal high conviction pic. I'm a human & I also make mistakes. Always follow risk management & please consult your financial advisor before arriving at any decision. All this is for educational purposes only & my goal is to make you an independent trader. So, if you're buying or selling anything just because I'm posting about it, you are completely defying my intention of creating all this. So please refrain from doing the same. Thank you!

So, below is today's CHART OF THE DAY :-

But.... where is the name?

Well, its hidden, you will know the name AFTER you read this blog (Learn & then earn)!

What's bullish in this chart?

• Good question. If you would observe the chart closely you would see that there is a pretty long consolidation of well more than 230 days. Which means almost 8 months!

Then why is this "unperforming" stock suddenly bullish?

• Well, that's where price action comes in. During the consolidation, the stock dipped & came up again. Then dipped & came up again. It did this 3 times.

• Each time when it dipped, it dipped lesser than the previous one. The rounding it created was lesser than the rounding before!

• This indicates that the buyers are showing aggression in buying the company as they are ready to buy at higher prices than what they bought for sometime ago. 

• The price was also rejecting from the same area which is the zone around 1805. This means that the sellers are not much aggressive in selling the stock & are waiting for the price to come back at that level.

• Now, since the price has broken out, it means sellers have vanished from the markets & the aggression which the buyers showed have resulted in a win for them!
  

This is the reason why I am bullish on this particular chart. Do you have any other input? Fell free to share with us in the comments below!

So now, finally, its time to reveal you the chart with company name. 

*Drum rolls*

*Some more Drum rolls*

Grasim Industries

THANKS FOR READING!