5th 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 :-

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. Lets first observe the chart & decode what's happening inside. You will see that the price first falls, makes a rounding bottom, comes up, rejects from the rejection zone, goes down a bit, comes back making another rounding bottom & them breaks out.

• This pattern is known as the Cup & Handle pattern. The name is because it resembles the same in real life.

But why is this pattern bullish?

• Another good question. The cup & handle pattern is considered bullish because it shows are the buyers are being aggressive in buying the stock while the sellers are still waiting for the same area to sell. Once it gives a breakout, the buyers are declared winners & there is generally a good one sided rally.

Okay, is there anything else?

• Hell yes! Lets analyze the volumes too. I've market them to help you out.

• You can easily observe when the stock was going up there were good volumes but when it corrected, there were less volumes. This means that there is more activity which the company is gaining & "dry up" zones form when it declines.

• It also broke out with a volume confirmation which means good volumes either at the breakout day or recently. You can see that those green volume bars are bigger compared to the red volume bars in the recent days, this shows buying interest.

So, These are the reasons 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*

Technocraft Industries

THANKS FOR READING!

Don't Forget to check our latest posts in this blog to get more knowledge for free :)