It is possible to capture massive moves in stocks using price patterns along with simple indicators like the ADX (Average Directional Index). Check out how we selected PGIL which has rallied more than 12% since 22nd November 2024.
ADX- The average directional index (ADX) is a technical indicator used by the traders to determine the strength of a trend. It commonly includes three separate lines. These are used to assess whether momentum is building on the stock or not.
We published the following research on PGIL pre-market on 22nd November 2024 in "Vayu Momentum Report” which our subscribers receive pre-market every day.
PGIL Daily chart anticipated as on 22nd November 2024
Wave Analysis as on 22nd November, 2024:
In the previous session, PGIL showed sharp rally of more than 4% in a single trading day despite fall in major indices. The stock has formed a cup and handle pattern on the daily chart. Price has closed above 1100 levels which confirms breakout of the said pattern. On the daily chart, ADX is suggesting strong momentum can continue in this stock as it is showing readings of 28 which is above 25.
Also, since 13th November not a single candle has given a close below previous day's low which suggest strength in ongoing trend. After a sharp rally one should use buy on dips method to enter into the trend.
Key Resistance: 1190
Key Support: 1100
Strategy: Use dips towards 1110-1120 as a buying opportunity for a move towards 1185-1190 levels as long as 1100 holds on the downside.
PGIL Happened as on 2nd December 2024
Happened – After we published the report, PGIL moved as expected. PGIL has given breakout of Cup and Handle pattern with huge volume which was a bullish sign and Bang on!! After a dip, stock moved up and achieved both our given targets in 2 trading sessions and made high of 1257 levels which is more than 12% move from lows.
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