Nykaa- Wyckoff Accumulation
The stock has broken out📈 of 11 months long consolidation or Wyckoff accumulation phase as Wyckoffians calls it. There are many signs of strength which signify a potential change in trend from downtrend to an Uptrend.
⚡We all are familiar with what is called a down trend📉. A downtrend simply means lower lows and lower highs in the price structure. In this chart we can observe a shift in structure from LL-LH to a HL-HH.
⚡In more simpler terms, the price just managed to jump🏋️♂️across the resistance by breaking recent swing highs.
⚡Not only it broke above the resistance, but it did with huge volume💪 also. This is telling us about the strong buying interest by the traders and investors🧐.
⚡Also notice higher volume on Up days than on the Down days. This is another indication of accumulation going on since Jan 2023.
⚡The price has been holding above the breakout level (see blue rectangular area on the chart). It's not uncommon for the price to pullback to retest those levels and then resume on the upside.
⚡Pullbacks should be considered as a buying opportunity as long as the stock holds above the breakout level.
I hope this idea will add to your learnings.
Keep boosting🚀for more educational ideas in future.
⚡We all are familiar with what is called a down trend📉. A downtrend simply means lower lows and lower highs in the price structure. In this chart we can observe a shift in structure from LL-LH to a HL-HH.
⚡In more simpler terms, the price just managed to jump🏋️♂️across the resistance by breaking recent swing highs.
⚡Not only it broke above the resistance, but it did with huge volume💪 also. This is telling us about the strong buying interest by the traders and investors🧐.
⚡Also notice higher volume on Up days than on the Down days. This is another indication of accumulation going on since Jan 2023.
⚡The price has been holding above the breakout level (see blue rectangular area on the chart). It's not uncommon for the price to pullback to retest those levels and then resume on the upside.
⚡Pullbacks should be considered as a buying opportunity as long as the stock holds above the breakout level.
I hope this idea will add to your learnings.
Keep boosting🚀for more educational ideas in future.
JJ Singh
Trader/Investor
Moderator, TradingView
🚀Join t.me/jjsingh_2020 ,
A Free Education channel
🚀Tweet at twitter.com/JaySingh_2020
Trader/Investor
Moderator, TradingView
🚀Join t.me/jjsingh_2020 ,
A Free Education channel
🚀Tweet at twitter.com/JaySingh_2020
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