HAL an energy stock setting up LONG
HAL being part of the energy/ oil sector has been down lately but after all in keeping
with the concept of buying low and selling high, it may be at a buying point. Here in the 4H
chart, I have set up two long term anchored VWAPs one at the swing pivot high a year ago
and another at a swing pivot low last October. As a result the chart has zones between the
values (1) the mean VWAP zone between the two thick black lines. (2) the upper and lower
one standard deviation from the mean zones between lighter blue lines and (3) the
upper and lower two standard deviations from the mean zones between the lighter red lines.
HAL's price has crossed the mean WVAP zone from underneath it, a sign of bullish
momentum and so a buy signal. The targets are the evolving dynamic resistance above
in the form of the zones between the blue lines and beyond that the red lines.
The volume profile with a POC line near to the mean VWAP validates the setup.
Accumulation in the three months as shown by higher relative volumes in the past
three months is another validation. More demand will push prices higher.
I see this as a long-trade setup. ( I also rely on Buffet buying more OXY ) My preferred
position is a call option expiring in November or December at a strike $30-31 which
if performing well will be held until a couple of weeks before expiration . This idea is
meant to highlight the use of anchored VWAP on high time frame charts to capture the
role of both price and volume in market dynamics and in the determination of zones of
liquidity and volatility so as to provide quality analysis without reliance on multiple
lagging indicators that may neglect any focus on volume and so handicap the trader
seeking to take high quality A+ setups layering in some trade managment tactics to
optimize alpha returns.
with the concept of buying low and selling high, it may be at a buying point. Here in the 4H
chart, I have set up two long term anchored VWAPs one at the swing pivot high a year ago
and another at a swing pivot low last October. As a result the chart has zones between the
values (1) the mean VWAP zone between the two thick black lines. (2) the upper and lower
one standard deviation from the mean zones between lighter blue lines and (3) the
upper and lower two standard deviations from the mean zones between the lighter red lines.
HAL's price has crossed the mean WVAP zone from underneath it, a sign of bullish
momentum and so a buy signal. The targets are the evolving dynamic resistance above
in the form of the zones between the blue lines and beyond that the red lines.
The volume profile with a POC line near to the mean VWAP validates the setup.
Accumulation in the three months as shown by higher relative volumes in the past
three months is another validation. More demand will push prices higher.
I see this as a long-trade setup. ( I also rely on Buffet buying more OXY ) My preferred
position is a call option expiring in November or December at a strike $30-31 which
if performing well will be held until a couple of weeks before expiration . This idea is
meant to highlight the use of anchored VWAP on high time frame charts to capture the
role of both price and volume in market dynamics and in the determination of zones of
liquidity and volatility so as to provide quality analysis without reliance on multiple
lagging indicators that may neglect any focus on volume and so handicap the trader
seeking to take high quality A+ setups layering in some trade managment tactics to
optimize alpha returns.
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