ANALYSIS DATE: 13-12-2023
In this blog, I bring you a detailed breakdown of a stock I've recently traded or analyzed which is LatentView, a stock that caught our attention on November 19th.
Analyzing the LATENTVIEW Stock:
The LATENTVIEW trade spanned over eight weeks, presenting a moderate level of risk. Despite not being a quick money venture, the stock yielded an impressive 18.33% profit in just 26 days. Let's delve into the technical analysis that guided this success.
Chart Analysis:
On my trading screen, I shared insights into LATENTVIEW's journey from entry at 410 to a profitable exit triggered by a trailing stop loss at 486 on December 5th. The visual representation aids in understanding the dynamics of the trade.
Fig 1: Daily chart of LATENTVIEW with marking of entry and exit showing swing trading setup's performance
The Technical Analysis Framework:
The key of our success lies in a meticulous analysis, starting from the highest timeframe. The weekly timeframe revealed a promising rounding bottom pattern, signaling the beginning of a strong uptrend. Rather than entering immediately after the double bottom breakout, I patiently waited for a correction, taking note of the volume trends.
Volume Profile:
Analyzing the volume profile on both weekly and daily timeframes provided crucial insights. The volume uptrend during price increases and the subsequent decline during corrections signaled a healthy market participation. This strategic observation allowed us to time our entry more effectively (refer to fig 1)
RSI Analysis:
The Relative Strength Index (RSI) played a pivotal role in our decision-making process. The positive range shift on the daily timeframe indicated a strengthening momentum, supported by the fact that the RSI consistently held above the 40 level. RSI divergence on lower timeframes further validated our bullish stance.(fig 1)
Multi-Timeframe Confirmation:
To ensure accuracy, we ventured into lower timeframes – 75 minutes and 15 minutes – seeking confirmation. The positive RSI divergence on the 75-minute timeframe aligned with our overall analysis, offering a green light for entry. Going even lower to the 15-minute timeframe, we observed a compelling RSI divergence, solidifying our conviction making our investment case stronger.
Waiting Game:
One of the key lessons here is the art of patience. Between identifying the stock's positive trend and recommending it to members, there was a waiting period of 61 days. This period allowed for a thorough confirmation of the trend's strength and minimized the risk of entering prematurely.
What's Next for LatentView:
As of now, LatentView remains an attractive prospect, with the last rally supported by strong volumes. While awaiting a more stable market condition, we keep a vigilant eye on LatentView, ready to guide our members when the time is right for a fresh entry.
Interactive Analysis and Viewer Questions:
In my live webinar, I also interacted with viewers, where I provided on-the-spot analysis for specific stock requests. Covering a diverse range of stocks—from NSE: PATANJALI, CESC, ASHOKLEY, PFC, and ITC—the discussion delved into entry and exit points, market outlook, and technical nuances.
Conclusion:
The success of the LatentView trade exemplifies the power of combining technical indicators across multiple timeframes. Patience, meticulous analysis, and a deep understanding of market dynamics are the keys to unlocking profitable opportunities in the ever-evolving world of trading.
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Watch my detail technical analysis on LATENTVIEW on youtube by clicking on the link given below:
Thank you for reading!
-Kavita Agrawal CMT CFA
