Chart of the Day! - 8th December 2022

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, here is today's CHART OF THE DAY :-

Chart of The Day

But.... where is the name?

Well, If you just want to know the Chart, scroll to the bottom, for explanation read below!

What's bullish in this chart?

• Good question. Lets first observe the chart & decode what's happening inside. This one is a nice classic VCP. Ran up with great volumes & then started consolidating. Rejected from that horizontal trendline, dipped, made a base & came back again. Then rejected again, made a bottom & came back. Consolidated tightly just below the trendline for a while & finally broke out today with volumes confirmation.

• If you would notice there is one more thing, the stock tried breaking 538 & zone around it 3 times but failed every time making a large upside wick. But today, the candle closed strong above the trendline as well as the supply zone. This indicates the buyer's strength & hence the stock's bullishness.

• Have a look at those green buildings below the price. There are some really good ones of them & they are most of the times comparatively larger than the red ones. So, good volumes in the past too signifying that good enough accumulation has been done while the stock was in consolidation.

• During the dip 1 & 2, notice the behavior of the price. While dipping, it came down making small small less volume candles but when it came up, it did that within 1 candle with big volumes. Well, I can these institutional footprints. This is just my theory that whenever price comes down slowly with less volumes & suddenly comes back up with good volumes, there is some institutional activity happening on the buying side.

• Also, the breakout candle closing was strong showing that the buyers remained undefeated & dominated till the end of the day. A pretty bullish & +1 conviction sign for me.

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*

    Garden Reach Shipbuilders & Engineering

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