The information that we gather from the chart is that the stock is around it's resistance line. That gives us enough insight as to how we should trade the script.
How to trade this particular idea ?
1. As seen in the past the stock has strongly reacted around the line with good candles. We can assume that the stock will repeat it's behavior again (although history doesn't Always repeats itself).
2. If there is enough momentum for a breakout we can go long after a pullback around 820-822 level, and if the buyers act weak we will short after the stock gives the confirmation of going down. This can only be observed through price action and not through any indicator at the moment of trading.
I'd like RSI to be above 60 for selling but that is just a preference as it makes the conviction strong.
How to trade this particular idea ?
1. As seen in the past the stock has strongly reacted around the line with good candles. We can assume that the stock will repeat it's behavior again (although history doesn't Always repeats itself).
2. If there is enough momentum for a breakout we can go long after a pullback around 820-822 level, and if the buyers act weak we will short after the stock gives the confirmation of going down. This can only be observed through price action and not through any indicator at the moment of trading.
I'd like RSI to be above 60 for selling but that is just a preference as it makes the conviction strong.