Here's a case study of a pharma sector stock named Auropharma. Below is the 5-minute chart of the same. Scanning previous session price action, we can see price fall in the scrip. A Resistance zone from previous session is marked near 631 levels.
I have marked today's open candle in the chart. As price moved up, it pierced the daily pivot 'p' and started taking support near the Resistance zone from yesterday. In the process, last session's Resistance morphed into Supply zone. A Hammer candle followed by a confirmation candle manifested on the chart at this juncture.
RSI was above 60 levels and formed PR. 200-MA was also in the vicinity. Price generally gets attracted to 200-MA. A hurdle near 634.5-635 levels marked by thin horizontal box can be seen in the chart.
Taking all these confirmation into consideration, I drew a buy trade box. The trade details are as follows. Entry is @ 631.7, Stop is placed @ 628.6, and the Target is fixed @ 638. 200-MA, significant selling zone near 640, and current daily pivot 'r1' combined together defined the target for the plan.
Price gave a second chance after the trade was conceived at a better price reducing risk. The planned trade earned 6 points. We can also see the way price continued its ascent later the day.