Pattern Study AB=CD in ABIRLANUVO 1 Hour Candlestick Chart

As a trader I rely on Harmonic Patterns to determine the move forward in stocks, find the best entries and exits is quite  rewarding task.

In this post we will look at the AB=CD Pattern, a simple yet powerful pattern on a one hour candlestick chart of "Aditya Birla Nuvo LTD".

The Objective is to study price action post pattern formation, and not to delve into the pattern itself.

To know more on the Pattern visit this link

Below is the candlestick chart of ABIRLANUVO with an AB=CD formation:

Today the Stock opens at 825.25 which is point D on the Chart and moved higher, only to find resistance at the Fibonacci retracement level of 38.2% from the high of point A which stands at 885.

It is clearly visible from the chart above that the candle formed a long wick near the 38.2% level and it was accompanied by volumes also marked on the chart.
When there is confirmation that a stock is facing resistance at a particular level, we are in a high probability trade where in a break of the resistance will give a big move in the desired direction.


Having mentioned the facts, I would like to point you all to a trade I will take tomorrow going LONG in ABIRLANUVO above 850 with a Stop Loss of 839 and Target a of 872.