AXIS BANK LTDLong
#AXISBANK .. short term swing trade
Momentum:
Price Action: The stock is showing signs of bullish momentum as it attempts to break out of a recent consolidation range (marked by the horizontal resistance line around ₹1,177). The breakout appears to be taking place with some strength, which is a positive signal.
Target Area : The chart highlights a potential target zone above the breakout point, suggesting a price increase of approximately ₹40.70, which represents a 3.45% move from the breakout level.
Dow Theory:
Primary Trend: The primary trend on the hourly chart appears to be bearish, as indicated by the preceding significant downtrend.
Secondary Trend: The stock has been consolidating in a range after the downtrend, forming a base. This consolidation is indicative of accumulation, where sellers have weakened, and buyers are gaining control.
Tertiary Trend: The short-term trend shows a potential reversal to the upside, as indicated by the breakout from the consolidation phase.
Strength:
Volume: Although volume is not visible on this chart, a breakout with increasing volume would add further strength to this buy signal.
Support and Resistance: The stock has broken through a key resistance level at ₹1,177, which now acts as a support. If the price stays above this level, it reinforces the bullish strength.
Buy Signal:
Breakout Confirmation: The chart shows a confirmed breakout above the resistance level, which is generally considered a buy signal. The target price is indicated at ₹1,206, which aligns with the potential measured move from the breakout level.
Risk-Reward: The risk-reward ratio seems favorable, with the potential upside being greater than the downside if the support holds.
In summary, the chart is showing a bullish signal with a breakout from consolidation, supported by the reversal of the short-term trend according to Dow theory. The stock appears to have momentum on its side, and if the price stays above the breakout level, it could offer a solid buying opportunity with a target around ₹1,206.
Price Action: The stock is showing signs of bullish momentum as it attempts to break out of a recent consolidation range (marked by the horizontal resistance line around ₹1,177). The breakout appears to be taking place with some strength, which is a positive signal.
Target Area : The chart highlights a potential target zone above the breakout point, suggesting a price increase of approximately ₹40.70, which represents a 3.45% move from the breakout level.
Dow Theory:
Primary Trend: The primary trend on the hourly chart appears to be bearish, as indicated by the preceding significant downtrend.
Secondary Trend: The stock has been consolidating in a range after the downtrend, forming a base. This consolidation is indicative of accumulation, where sellers have weakened, and buyers are gaining control.
Tertiary Trend: The short-term trend shows a potential reversal to the upside, as indicated by the breakout from the consolidation phase.
Strength:
Volume: Although volume is not visible on this chart, a breakout with increasing volume would add further strength to this buy signal.
Support and Resistance: The stock has broken through a key resistance level at ₹1,177, which now acts as a support. If the price stays above this level, it reinforces the bullish strength.
Buy Signal:
Breakout Confirmation: The chart shows a confirmed breakout above the resistance level, which is generally considered a buy signal. The target price is indicated at ₹1,206, which aligns with the potential measured move from the breakout level.
Risk-Reward: The risk-reward ratio seems favorable, with the potential upside being greater than the downside if the support holds.
In summary, the chart is showing a bullish signal with a breakout from consolidation, supported by the reversal of the short-term trend according to Dow theory. The stock appears to have momentum on its side, and if the price stays above the breakout level, it could offer a solid buying opportunity with a target around ₹1,206.
Note
Update ... awaiting the break
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