Good Morning.
All stocks move up n down between their support &
resistance. Some time a stock breaks support/resistance.
How up or down a stock will move depends upon its previous
day’s closing and positive/negative news after market hours.
I prefer to go for a stock which had broken its
resistance but not near its next resistance. I avoid a stock which had broken
its resistance but trading below its 3/5/9 day’s SMA.
Sometimes closing price indicates it had broken
resistance but VWAP/ average traded price is below resistance.
Intraday trader is looking for small profit and hence
knowledge of S&R is important along with mathematical calculation for qty
to buy at different level so that one gets chance to exit position at least with
paper-thin margin instead of loss.
Pivot point trading is not helpful, check FINCABLES.
I will buy FINCABLES above 247.50 and at 243/240.75, SL 238, target
254.25/256/258.
Calculation of S&R is based on mathematical calculation.
Regards
