Gap formed on march 12th acted as a strong resistance which was tested multiple times. Stock is moving in a clear uptrend forming HH &
HL and with a good accimulation near its resistance area it has given a clear breakout with massive volumes and good relative strength.
Now it is at very crtitical level i.e. its previous support, which has now become its resistance (445-450 levels).
If the stock is able to hold these level and sustain for a meaningful time above this level, it has a good potential to rally more from here since buyer's momentum is too good (check if RS is above the zero line).
But if it opens gap down or isn't able to sustain above this level, a good sharp fall can be seen on account of profit booking or seller's waiting to trade at this resistance levels. In such case 389-390 is a strong support.
Let's wait for some more price action. Trade with caution.
Disclaimer: Take this view for educational purpose. Trade on your own risk.
Happy trading!
HL and with a good accimulation near its resistance area it has given a clear breakout with massive volumes and good relative strength.
Now it is at very crtitical level i.e. its previous support, which has now become its resistance (445-450 levels).
If the stock is able to hold these level and sustain for a meaningful time above this level, it has a good potential to rally more from here since buyer's momentum is too good (check if RS is above the zero line).
But if it opens gap down or isn't able to sustain above this level, a good sharp fall can be seen on account of profit booking or seller's waiting to trade at this resistance levels. In such case 389-390 is a strong support.
Let's wait for some more price action. Trade with caution.
Disclaimer: Take this view for educational purpose. Trade on your own risk.
Happy trading!