Yesterday in Federal Bank horizontal channel breakout is seen and stock closed above Resistance/horizontal channel yesterday
But today even nifty was in support of updrend, federaral bank came below resistance again , is it was a false breakout
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See if anyone want to take trade in breakout then on day before yesterday could take entry as risky player based on hourly chart , but as safe player could take entry in yesterdays closing or at breakout of day before yesterdays high (more safe) (volume has been increases clear breakout seen as closing at good high level ).
Also one trader could have taken entry at breakout of yesterdays high which is also a good entry but after entry …after mid of todays day ,prices strted falling and came back in zone .
Hence is it a good entry in all above cases .
Taking assumption that trader trade in day timeframe and take entry in hourly time frame.
(Considering indicator :-
If day volume is higher the previous day volume and RSI 14 is above 50 level.)
Federal bank is at stiff resistance of 97-98 level, once it closes above it on closing basis and also i assume its strength increases once Federal bank closes above 99 consistently. Levels 95 & 93 are the best level to enter Federal bank ( my views are not recommendations )
i think the breakout is intact.
tgts seen at 104-105
sl 96
This was a little suprising for me too, to be honest
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Verify below points
(1) If breakout levels sustains for 2 days - it is successful
(2) You need to verify Candle formed at breakout - whether bullish candle or not
(3) Volume : You need to verify volumes at Breakout - whether Volumes are high or not .
Bullish candle + Good volumes at break out is sign of successful breakout.
In Above chart : in Fedaralbank Daily chart bearish candle formed at resistance and Bearish pin bar in weekly chart - So chances more for price reversal will not sustain current levels -i.e false breakout
I had bullish view on Federal bank when it was trading at 93 , along with market , Federal bank went down to 90 , so i stopped , following it , Thank you for bringing it here , i bought Federal bank & sold at Rs 97.6 & 99.60. intra-day , i am still bullish on it, right now Federal bank going
to close above 99 ,
so its not a false breakout.
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Then market will say in most of times that “Party is Over Now”
So it will be for extremly safe players which do not get good return in this even some time strt consolidating and pull back sometime.
So i dont prefer to wait for two day for high confirmation.
Sir please read my topic again in which i have clearly mentioned that dont consider the red candle (that is assume that you are seeing closing prices two day ago)
Yes i also consider this which give confirmation for true breakout.
But if it was not a not false brekout then why you stopped following it , and took entry/trade in intraday only…which means that if you consider it breakout then you would have taken positional entry .
Read my another topic .
See in my shared link of Axis bank trade in which if you wait for 2 Days then prty has gone over and you get nothing and prices today came down …(yes its a sign of pullback but the main prty has gone now)
Yes correct , but i took intra-day because of 2 things
-
I missed it at 93, while taking positional trade , i do consider effect of ,Main market direction/ momentum on individual stocks . ( right now , market is in a short term up side, near at major resistance levels, and also long term charts are not giving confidence )
-
From last few weeks i am concentrating more on USDINR currency trading , slowly increasing lot sizes .
Yes your entry was perfect which you missed based on candles which toches support and resistence and you took entry based on past data which conluded that it could possibly reverse as seen in past candles…
Great explanation 
Also good decision for intraday trade only.
But now it could gave a PullBack and flew…
A breakout from a base pattern is considered an ideal time to buy a stock. When markets are correcting, three out of four stocks feel the pressure. Even fundamentally strong stocks with good financial strength and growth story fail to deliver results expected of them. So, even when the market seems to be reviving, one feels inhibited to actively take positions in individual stocks.
How does one cope and find a reliable and profitable way out of this randomness? Thanks to technical analysis and historical research, there are tools that can bring some method to this madness and be beneficial.
First, let’s answer your question-
A breakout is a phenomenon that a stock exhibits after making a sound base pattern (any of the five bases), indicating that it’s ready for a rally. There’s a set pivot price that is dependent on the shape and form of the base pattern (like cup-with-handle, saucer-with-handle, flat base, etc.). When the stock crosses and ends above that pivot price, it’s said to have broken out and is set for further upside.
A breakout is key to realize your reward that you earned through patience and extensive stock selection. Almost all rallies in stocks are preceded by strong and clear breakouts.
Signs of a good breakout -
- The base pattern of the chart from which the stock is breaking out from should be convincing with its shape, depth, and price-volume action along with its formation.
- Ideally, a good breakout is supported by strong volume, and is typically 40% higher than 50-day average volume. Strong volume indicates credible participation from institutional investors. Therefore, the stronger the volume is, the healthier the breakout will be.
- Strong price action is favorable in a breakout. Gap up movements (stock opening significantly above the previous day’s close and maintaining the gain) and stock ending near the day’s high are good signs to see accompanying breakouts.
- A good breakout should have the support of a Confirmed Uptrend in the overall market. Breakouts in such markets have a higher chance of a strong rally.
Here’s an example of a successful breakout. Coromandel International formed a cup-with-handle base, as visible on the daily chart. The stock broke out of its pivot price on strong volume and progressed well. Subsequent to the breakout, the stock gave more than 20% return in seven weeks.
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