Chart of the Day! - 7th 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. The price first makes a base, then makes a small uptrend (higher highs with higher lows). When it comes near the resistance point of the base, it consolidates tightly to make a kind of flag pattern which it breaks out finally with volume confirmation.

• The price action pattern which are made just after uptrends are considered very strong in nature because they tend to absorb the supply which is present just at the resistance. Once that is taken off, the stock rallies like a rocket!

• Another bullish thing if you would see carefully is that while the price was consolidating tightly to make a flag, the volumes started contracting. This tells that the supply was getting lesser & lesser.

• And then suddenly when demand went up today, due to low supply, the stock broke its narrow price range resulting in a breakout with huge volumes!

• But, there is one drawback in this setup, the breakout candle doesn't look that bullish because of the long upside wick which shows that the stock experience selling while it came up today. 

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*

Interglobe Aviation

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