Thread by @sarosijghosh

𝐁𝐈𝐑𝐋𝐀𝐒𝐎𝐅𝐓 - 𝐀 𝐂𝐚𝐬𝐞 𝐒𝐭𝐮𝐝𝐲
(How I took the trade in #BIRLASOFT, and how I'll be managing the trade now)

~A THREAD 🧵~

𝘋𝘪𝘴𝘤𝘭𝘢𝘪𝘮𝘦𝘳: 𝘐 𝘢𝘮 𝘯𝘰𝘵 𝗦𝗘𝗕𝗜 𝘳𝘦𝘨𝘪𝘴𝘵𝘦𝘳𝘦𝘥.

#stocks #StocksToTrade #BREAKOUTSTOCKS #StockMarketindia

1/ Price was stuck in a range for a long time after a good advance. Now, when I saw the chart for the first time I thought that maybe distribution was going on, in the overall context of the trend.
But, upon closer look I found something interesting.

2/ Look at the price and volume relationship, whenever price was heading higher, volumes were mostly above average.
Now, I was beginning to think that maybe it was not a distribution phase, but re-accumulation.

3/ Now, again look at this chart. Look at the volumes when price was falling within this range, volumes were clearly stagnant or decreasing meaning that there was very little supply available at these prices.

4/ However, we should not go ahead and pull the buy trigger without taking confirmation from the market itself. The confirmation came on 9th Nov'21 when price broke a pivot on high volumes. I went ahead and bought it at ₹434.50 [8.52% of PF]

5/ I will also be looking to add this if price pulls back or, breaks out after making a fresh base.

Thank You!
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