In Monthly timeframe, Asian paints looks like, is in formation of a DOUBLE TOP!!! (Making HIGH(Jan 2022)and LOWER HIGH(Sep 2022) respectively) (shown as image attached in the chart)
1. Asian paints has been travelling in Ascending channel pattern(red and green) taking support at respective levels from 2019. 2. Now currently its is in the down swing in a descending channel(white trendlines). 3. January 2023 Monthly candle - going to be the decider for further move.(if it closes below 2900- we can confirm the bearishness further)
4. In daily time frame, it has formed a Head & Shoulders pattern and given BREAKDOWN!!! 5. By H&S pattern, Target gets to about 200 points(to 2850 level).
6. Green line down near 2900 is acting as support from 2020. 7. DOUBLE TOP (Monthly timeframe) will mostly likely be confirmed if the Green line gets broken. 8. Let's wait and watch whether the monthly candle breaks the green line or not!!!
Asian paints is one of the stocks which has not reached the 52 week high (during recent rally of market)!!!
Take SL as day candle closing out of the white channel.(3090) & Keep Trailing the SL!! 1st Target - 2900, will update once it reaches this target.
If the Double top works as it does, Asian paints can see 2250 level soon.
Even if we don't trade now, It is better if we don't make any long term investment on Asian paints as of now.(as it is bearish)
Let's wait and watch how it moves!!! What this is going to teach us!!!
Note : Just sharing my view.....Not a Tip nor Advice!!!
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Moving as per levels
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TARGET 2900 Reached!!!
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Trade closed: target reached
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2700 -- 2nd target level done!!!(yellow dashed line) seen respecting the trendlines... 2700 may acts as consolidation zone...there may be quick up move or a sad sideway move!!
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is it the start of next down move to 2500 level ?!!!
👍 Thank you for sharing your analysis and insights on Asian Paints. Your chart interpretation is quite informative, and I appreciate the effort you have put into explaining the technical indicators and patterns. I agree with your opinion on the stock's bearish trend, and the fact that it has not reached its 52 week high during the recent market rally is concerning. It's always wise to wait and watch for further confirmation before taking any action. Let's hope the monthly candle does not break the green line, and Asian Paints can recover soon. Good luck with your trades!
mmjimm
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@Kapil-Mittal, Thank you :-) and Wishing you the same !!!
mehtasahil
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2731 is the final level. It won’t go below that. It is a breakout and taking retest support at 2731
mmjimm
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@mehtasahi Yes, It is also a possibility.....let's wait for the market's decision!!
Regards,
Vanathi