52 week highs and all time highs strategy

Manali Petro update. cmp 86. Some observations on the weekly candlestick chart posted below.

1. Manali petro formed a double bottom at levels of around 57 in March 23 and March 24.

2. Confirmation of the double bottom breakout happened when stock price crossed intervening peak at 87 in June 2024 and stock price managed to hit a swing high of 104.95.

3. Since then stock price has been in a corrective mode and has retested the breakout level of 87, has gone down below it and hit a swing low of 84.

4. Its’ been nine weeks since the swing high was hit and this week we had a spinning top candle. Spinning top candle is usually a sign of indecision, and if it happens at the end of a downmove or upmove, often can be a point of change in trend.

5. For confirmation of resumption of uptrend, we need to see a bullish candle next week, preferably taking out the body of the candle two weeks back, i.e closing above 90.73. If that happens, it might provide an additional marker about possible change in trend.

6. The whole correction enclosed in a triangular structure has not corrected more than 50% of the prior upmove.

7. Double bottom breakout target if pattern plays out is 117. Rounding structure top is at 149.65 which remains its all time high posted in April 2022 in the chemical rally.

disc: invested and not a recommendation. ( This is how I often keep monitoring stocks that I hold on charts, trying to put in all observations and see how things go ahead. If things go in my favour, I often add to my position, and if they don’t go as per my expectations, I hold, or reduce my position according to price action. )