As a trader, identifying where the buyers and sellers are likely to be interested could make a huge positive difference to your trading account.
Once you identify buyers / sellers, you can use pick-and-choose any tool / indicator / astrology to take trading positions. So, take some time to identify where buyers / sellers are stacked up. Be my guest as I try to do this exercise in the daily chart featured below.
From the chart, it’s apparent that the buyers are keen to defend the Rs.113-120 range. Pay attention to the yesterday’s huge breakout bar, which suggests sellers at Rs.119 have been overwhelmed.
The next bunch of sellers are likely to be around the Rs.130-level. How you want to design a trading strategy is a question of personal preference. You can go long on dips, for a rally to Rs.130 or Hunt shorts near Rs.130 or buy a breakout above Rs.130.
Personally, I would prefer to buy the dip for an initial target of Rs.130.