The stock of National Fertilizers Limited (NFL) has exhibited a 'double bull trap' as shown in the 75min chart. The first time bulls were trapped on 12 May at morning highs in the range of 72.5-73.5. The trap was laid further the second time with another gap up crack on 20 May with 72.5 high.
Imagine the plight of the folks who bought at these zones. They will be looking to sell at the first go if the stock comes in this range again. Thus, we can see quite a bit of overhead supply in this zone.
It goes without saying that if this overhead supply is consumed, a major bullish breakout can be seen.
Note: This is an edu post and not intended to make any specific calls.
Imagine the plight of the folks who bought at these zones. They will be looking to sell at the first go if the stock comes in this range again. Thus, we can see quite a bit of overhead supply in this zone.
It goes without saying that if this overhead supply is consumed, a major bullish breakout can be seen.
Note: This is an edu post and not intended to make any specific calls.