How to Make Excellent Profits with Support & Resistance # 2
Case Study : Tata Steel profit of Rs. 2⃣6⃣0⃣0⃣0⃣ in 2 Days & still holding.
Supports & Resistance
Support and resistance represent key junctures where the forces of supply and demand meet. In the financial markets, prices are driven by excessive supply (down) and demand (up).
Supply is synonymous with bearish, bears🐻 and selling.
Demand is synonymous with bullish, bulls 🐮and buying. As demand increases, prices advance⬆ and as supply increases, prices decline. ⬇
When supply and demand are equal, prices move sideways as bulls and bears slug it out for control.
Support is the price level at which demand is thought to be strong enough to prevent the price from declining📉 further.
Resistance is the price level at which selling is thought to be strong enough to prevent the price from rising📈 further.
In addition, price movements become volatile and rise above strong support & resistance levels once breached.
Now, Let’s look at our Case study for this week.
Recommendation Buy @745 Stop loss @715, Expected Target 790
1⃣ Horizontal blue line H3D @742 is played strong resistance and the stock corrected to 662. see point 0
2⃣ Tata steel took resistance @ 744 @ point 7 stock re-fell Hence 742 strong Resistance.
3⃣ Horizontal line H2D played very strong support multiple times @ points 1,3,5 eventually pushing the stock up⬆⬆
4⃣ White Line H2D played minor resistance @717
5⃣ Once the stock regained support @ point 8 after falling from point 7. And then finally breaching 743 we recommended by @745 for target 790.
The stock shot up like a 🚀 and flared up to 777 the next day.
How amazing though Simple and we’ll known studies
If you want to make such astonishing gains then
Ask 3 Questions to yourself
- Am I giving good time to study to identify next trading opportunity?
- Where do I get stuck in study or in execution?
- Am I trading for making real money or doing trading for fun?
“Lose your opinion but don’t lose Money”
Legendry Investor Warren Buffet.