🔥Unveiling the Secrets of Amber: A Rollercoaster Ride

24 Ara 2023

📈The Weekly Chart Analysis

• Our journey begins with the weekly chart of NSE:AMBER. From February 2021 to May 2022, a significant support area was tested multiple times. This area served as both a support and resistance at different times, indicating its importance.
  
• In May 2022, this support area was sharply broken, leading to a quick price drop.
  
• Following this, a pattern resembling a rounding bottom emerged on the weekly chart. However, it's not a perfect rounding bottom.
  
• The price then shot up rapidly, accompanied by a large volume on the green bar.
  

🔁The Cycle of Support and Resistance

• The price reached an important area around August 2023, which had previously served as a strong support and was now acting as a resistance.
  
• This resistance was finally broken in November 2023. From August to November, there was strong consolidation near this area. The price held but did not drop, indicating that buyers were in control before the breakout.
  
• After reaching 3480, the price dropped and the area once again served as a solid support. The price bounced off this support multiple times.
  

🔍A Closer Look at the Daily Chart

• On the daily chart, we see that whenever the price drops, the volume on the red bars is very low. This suggests that the drops may be tests to see if sellers are present.
  
• The last candle, which is currently trading on the support area, is a bearish candle. However, its volume is significantly lower compared to previous volume bars, indicating that it might just be a test.
  
• The act of polarity is working prominently in this chart. On the weekly chart, we see large volumes on green candles. When we return to the daily chart, it becomes clear that the low volumes on red bars are likely just tests for the presence of sellers.
  

Absolutely, incorporating a potential trading strategy into the analysis would indeed make it more comprehensive. Here's how I would modify it:

🎯Potential Trading Strategy

• Given that the price is currently trading at a strong support area (3051), this could be an opportune moment to plan a buy trade.
  
• A stop loss (SL) could be set just below the support area at 2950. This would limit potential losses if the price were to fall.
  
• Considering the retest of the breakout, this could be a good opportunity for a long entry. The risk to reward ratio in this scenario is favourable, making this a potentially profitable trade.
  

Disclaimer: This analysis and trading strategy are for educational purposes only and are not intended as trading or investment recommendations. I am not a SEBI registered Analyst.

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Enjoy rally

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Amber is currently trading at 4548, up more than 50% in just 37 days from our entry level. Trail your SL to ride a rally