The seemingly convincing breakout retest structure in abv daily chart takes a cocpletely different picture in u open the chart in weekly TF
shooting start at the resistance line of a triangle and at a major supply zone
2/7
Major stocks such as heromoto, maruti, eichermot and babajauto are already trading below the breakout level it established on monday when sector broke out
3/7
This poses a serious question on the risks associated with breakout.
Popularity behind the breakout is the fact that it doesnt need any skills to spot it, even a 90% blind man can spot it in any chart, because the price just sticks out from the rest by a very big margin
4/7
But think about a completely diffferent method where the price makes a clean move and the risks assicated with it is cubstantially less.
Price available so cheap and at support
5/7
Here the price was caught at reistance and when everyone is interested in breakout, u can smoothly exit in silence with filliing the limit orders in profit booking
6/7
These charts of cnxauto were posted live. It was not postmortem analysis to justify a done move.
The moral of the story is mean revrsion which demands better skills and insights offer much bigger advantage compared to the popular version of brekaout trading
7/7