2 year rounding bottom breakout + retest in Dixon Tech.
Background:
With a massive ~8x post covid rally, Stock gave highest closing of 5753 and entered a long consolidation beginning Oct'21.
Strong Breakout (With reasoning):
With 2 years of consolidation and making a rounding bottom, the stock finally broke out and closed at 5951 on 1 Dec 23 along with good volume buildup. Post breakout, it consolidated again making a high of 6670 (sign of a healthy breakout).
Now, with breakout of this range, dixon is ready for a massive rally of ~56% being the gap between the low of round bottom and resistance.
Entry, Stop Loss and Target (With rationale):
1) With the stop loss at 6300 (low of Breakout candle), first target comes at 7600 (Being 2:1 risk reward)
2) 2nd Target at 8500 (1.6 level of fibonacci)
3) 3rd one, 9300 final target.
With a massive ~8x post covid rally, Stock gave highest closing of 5753 and entered a long consolidation beginning Oct'21.
Strong Breakout (With reasoning):
With 2 years of consolidation and making a rounding bottom, the stock finally broke out and closed at 5951 on 1 Dec 23 along with good volume buildup. Post breakout, it consolidated again making a high of 6670 (sign of a healthy breakout).
Now, with breakout of this range, dixon is ready for a massive rally of ~56% being the gap between the low of round bottom and resistance.
Entry, Stop Loss and Target (With rationale):
1) With the stop loss at 6300 (low of Breakout candle), first target comes at 7600 (Being 2:1 risk reward)
2) 2nd Target at 8500 (1.6 level of fibonacci)
3) 3rd one, 9300 final target.
Feragatname
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