Apoorv Dubey | SEBI Registered Research Analyst Here’s how I’ve broken down the chart: 1. The rally and correction The stock had a strong rally in 2024 before…
Apoorv Dubey | SEBI Registered Research Analyst Here’s how I’ve broken down the chart: 1. The rally and correction The stock had a strong rally in 2024 before reaching a major high. After that, price began to retrace, forming a series of smaller red and green monthly candles. I prefer looking at higher time frames because they help reduce some of the noise from shorter-term movements. 2. The Fibonacci zone I’ve drawn Fibonacci from the major swing low to the swing high.
The grey area marks the 50%–61.8% retracement zone. Price eventually moved sharply below this area with a large bearish candle. Later, it recovered and came back above the zone. 3. Was it a “weak hands” removal? In hindsight, the breakdown followed by a recovery can be studied as a possible shakeout or failed breakdown. But the chart alone cannot tell us exactly who sold or why...and this interpretation is only possible after the recovery has happened. 4.
The counter-trendline The yellow descending line connects the lower highs formed during the correction. Price has reacted around this line several times over the past two years. The current monthly candle has moved above the line and the recent base. It is still running, however, so the final monthly close and subsequent price action remain to be observed. For me, this is a chart to keep on the radar and study as an example of retracement, recovery and a developing move above resistance.
👀 For educational purposes only. Not a recommendation to buy, sell or hold any security.
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