The stock was already on a decline - last week's news made the fall steeper.
ACC has successfully retraced to 0.382 of its top at CMP of 1400
What indicators are showing:
- CMP is towards the lower bound standard deviation.
9 day - price has been consistently below for about two weeks - indicates bias.
- almost near the oversold zone
- Signal and lines verify bias seen in price action, but may cross the signal line from bottom soon.
Forecast- I have marked two scenarios in the chart.
Scenario 1 - If support comes in at 1390-1410 zone (as seen during May 2016), price may go up to immediate resistance - 1460 - 1470
Scenario 2 - If bears continue pounding the stock, next support is not far away - 1315-1325 levels
Traders may choose to enter long as and when the stock gets support.
Note: Levels are sacrosanct and avoid taking risks at intermediate price levels as much as possible.
Happy trading !
In such cases, we do not take any LONG positions at the identified levels.
As I said, traders may choose to enter long AS AND WHEN the stock gets support.
In this case, ACC did not get support at all. There should be atleast 3-4 candles on a daily chart (may vary based on individuals' experience) to take the risk of going long - with strict SL.
These candles should close consistently above the support level.
If they don't, it is best not entering the trade.
Remember, making such rules helps in developing a good trading plan - which is of utmost importance to be a successful trader.