Deep Industries caters to the services required by Oil and Gas companies like ONGC and Reliance.
Friday's chart shows a fresh breakout in Deep Industries.
This breakout has come with large volumes. The stock is ready for next move. Breakouts are followed by consolidations. We do not know whether to stock will continue the movement or it will pause for a consolidation. I have marked the support areas on chart below. Entry levels can be tricky.
Entry 1- 285.45
Entry 2- 278
Entry 3- 261
When trading breakouts, the Risk Management becomes more important. However this pattern can give some quick gains.
To understand the risk of buying breakouts, you can read this article-
Friday's chart shows a fresh breakout in Deep Industries.
This breakout has come with large volumes. The stock is ready for next move. Breakouts are followed by consolidations. We do not know whether to stock will continue the movement or it will pause for a consolidation. I have marked the support areas on chart below. Entry levels can be tricky.
Entry 1- 285.45
Entry 2- 278
Entry 3- 261
When trading breakouts, the Risk Management becomes more important. However this pattern can give some quick gains.
To understand the risk of buying breakouts, you can read this article-
Disclaimer:
The contents produced here are purely for educational purpose. They should not
be construed as buy/sell recommendations. I am not a SEBI registered Analyst or
Investment Advisor. Readers are advised to consult their Investment advisor
before taking any decisions based on above write-up.
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