Axis bank looking bearish on higher time frame.

Mambotrade Updated   

Axis bank has been trading around the higher level and is forming a base near 1030 zone. Both side movement can be there in the stock and confirmation is need for the entry to trigger.

But the stock on the weekly chart is showing some bearish RSI divergence and the dropping strength can be the initial signal of a bearish move.

On the daily charts, it is around the 200 ema. Either it will breach the levels or take support from the same. Watch for the levels and price action.

If the stock starts trading below the 1028 level and even close below it, next month expiry derivatives can be traded for the bearish momentum in the stock.

Major bearish target levels :- 980, 950.

Entry :- Close below 1028 levels.

Positional/ swing trade can be initiated in the stock for the next month expiry and trailing SL must be kept to limit the lose and capture the move.

Wait for the price action near the level before entering the trade.
The stock is making a bearish setup and retested fibonacci levels while closing below.

Banknifty stock may give a up move in the coming week as banknifty is around the higher levels but stock is still 7-8% below its ATH levels.

An evening star formation can be seen on the charts, if this week stock give a red candle closing below 1028 level.

If the stock starts trading below the support zone of 1030 and closed below it on the weekly charts, an entry on the shorting side can be created.

Till now there is not much movement on the higher charts as it has consolidated in a zone and closed in close range.

Wait for entry setup to trigger an entry and capture the target points as per the R:R ratio.
Trade active:
Entry was triggered in the stock and trade is active in this.

Today the stock has dropped further and tested the low of 995.

Coming week can give first target and trailing SL should be used for trading the position for next target.



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