Dear Raviji,
Sorry for late reply, was out for whole week on vacation...
Cadila is in downtrend, the climax bar is of December 2015. we traded almost in a 300-340 zone since then...A good climax bar occurs after a prolonged run...
Anyways, rallies in a consolidation are weak as of now...Stock more prone to test lower levels...Let see near to 290 zone, or will see near 325-330 zone, if strength in rally appears...
Anilji is my thought process correct, how do you see this chart in the hindsight?
What would have been your thoughts and entry process.
Dear jain.er,
The query of Cadila was raised by Raviji for climax action and whether bottoming is going on or not. While i was expecting stock to test 290-295 zone, but it turned away from 305 itself...This is market for us...
The rise from 305 gives us clues, above avg volumes on up bars and closely seen they overcame the resistance zone showed with good healthy volumes...So a pullback entry long if occurred on such setups need to be taken with open arms...As price structure telling us rise was strong one...
I had expected to see how rise materialize till 325-330 zone, for judging going long, while replying to raviji in same post...As we see nature of rise is strong one, it indeed one can take to go long...
Now, here comes risk management part of that trade. As price is below crucial 200 SMA one could have taken position not in full..But price clearing 50 SMA with volumes must have prompted to go full with small SL...