AXIS bank has corrected 60% from its highs of 760 and had touched 300, but does it make AXIS Bank a good investment opportunity?
I have broken it down to you and analyzed AXIS bank on WEEKLY Time-Frame.
Key Observations-
1. VOLUME ANALYSIS-
• SELLING CLIMAX (Green Arrows)-
A climax occurs at the end of bull or bear market cycle and is characterized by escalated trading volume and sharp price movements. The beginning of selling Climax is often signaled by steadily increasing volume on sell side of
market as growing pessimism accelerates the downtrend.
• On this weekly chart of last 12 years (Green Arrows), volume climax has happened 3 times and once all selling pressure is over, there was a good Up-move.
• Volume Spikes (Dotted blue and Red lines)-
Unusually large volume, graphed on chart. If one day’s volume is two to three times the average volume, it will appear as spike. Volume spikes are plotted on Ascending Triangle formation. Volume spikes on trendline Support
and Resistance confirms visibility of big buyers and sellers.
• Currently AXIS bank is at demand Zone and is witnessing huge volume spikes.
2. DEMAND AND SUPPLY ZONE (Rectangle box)-
• AXIS bank is currently in good demand zone (Price Range 372-340), it has tested this level in year 2014, 2015 and 2020. It also managed to test strong support zone of 300 which it couldn’t break for 4 years from 2010 to 2014. AXIS
bank managed to close above this demand zone of 370 to 340 for last 5 weeks which is a positive indication.
3. RELATIVE STRENGTH INDEX (Blue UP Arrows)-
• Relative Strength Index (RSI) is momentum oscillator that measures Speed and change of Price movements. RSI oscillates between 0 and 100. Traditionally RSI is considered overbought when its above 70 and oversold when below
30.
• Over the last 12 years AXIS Bank has faced 6 oversold levels (Blue Arrows) where the RSI has touched below 30 levels on weekly chart. AXIS Bank managed to gain momentum as soon as it reached over sold levels and bulls
managed to change the trend up. Currently AXIS Bank has reached extreme Oversold levels and history suggests that it could be a good entry point for new buying.
4. FIBONACCI RETRACEMENTS –
• Fibonacci retracement levels are horizontal lines that indicate where support and resistance are likely to occur. They are based on Fibonacci numbers. Each level is associated with a percentage. The percentage is how much of a
prior move the price has retraced. The Fibonacci retracement levels are 23.6%, 38.2%, 50%, 61.8%, and 78.6%.
• AXIS Bank after hitting a low of 285 managed to retrace till 465 which is 38.2%. Currently it is stuck at 23.6% ie (400 ).
5. PRICE CHANNEL-
• A price channel is a continuation pattern that slopes up or down and is bound by an upper and lower trend line. The upper trend line marks resistance and the lower trend line marks support.
• Price channels with negative slopes (down) are considered bearish and those with positive slopes (up) bullish.
• For explanatory purposes, a “bullish price channel” will refer to a channel with positive slope and a “bearish price channel” will refer to a channel with negative slope.
• AXIS Bank has broken its bullish pattern and is facing resistance around 400, which is negative for short term
SUMMARY –
Looking at all the above points, we can conclude that AXIS Bank can be accumulated at current levels of 360 to 375. Second phase of buying can be done when AXIS bank is able to sustain its 400 level for few weeks. A medium-term target can be placed at 480 to 522 and long-term target of 600 can be achieved in few years. In Short term, we could see some pressure, but Axis Bank is a good Investment Prospect currently.
I have broken it down to you and analyzed AXIS bank on WEEKLY Time-Frame.
Key Observations-
1. VOLUME ANALYSIS-
• SELLING CLIMAX (Green Arrows)-
A climax occurs at the end of bull or bear market cycle and is characterized by escalated trading volume and sharp price movements. The beginning of selling Climax is often signaled by steadily increasing volume on sell side of
market as growing pessimism accelerates the downtrend.
• On this weekly chart of last 12 years (Green Arrows), volume climax has happened 3 times and once all selling pressure is over, there was a good Up-move.
• Volume Spikes (Dotted blue and Red lines)-
Unusually large volume, graphed on chart. If one day’s volume is two to three times the average volume, it will appear as spike. Volume spikes are plotted on Ascending Triangle formation. Volume spikes on trendline Support
and Resistance confirms visibility of big buyers and sellers.
• Currently AXIS bank is at demand Zone and is witnessing huge volume spikes.
2. DEMAND AND SUPPLY ZONE (Rectangle box)-
• AXIS bank is currently in good demand zone (Price Range 372-340), it has tested this level in year 2014, 2015 and 2020. It also managed to test strong support zone of 300 which it couldn’t break for 4 years from 2010 to 2014. AXIS
bank managed to close above this demand zone of 370 to 340 for last 5 weeks which is a positive indication.
3. RELATIVE STRENGTH INDEX (Blue UP Arrows)-
• Relative Strength Index (RSI) is momentum oscillator that measures Speed and change of Price movements. RSI oscillates between 0 and 100. Traditionally RSI is considered overbought when its above 70 and oversold when below
30.
• Over the last 12 years AXIS Bank has faced 6 oversold levels (Blue Arrows) where the RSI has touched below 30 levels on weekly chart. AXIS Bank managed to gain momentum as soon as it reached over sold levels and bulls
managed to change the trend up. Currently AXIS Bank has reached extreme Oversold levels and history suggests that it could be a good entry point for new buying.
4. FIBONACCI RETRACEMENTS –
• Fibonacci retracement levels are horizontal lines that indicate where support and resistance are likely to occur. They are based on Fibonacci numbers. Each level is associated with a percentage. The percentage is how much of a
prior move the price has retraced. The Fibonacci retracement levels are 23.6%, 38.2%, 50%, 61.8%, and 78.6%.
• AXIS Bank after hitting a low of 285 managed to retrace till 465 which is 38.2%. Currently it is stuck at 23.6% ie (400 ).
5. PRICE CHANNEL-
• A price channel is a continuation pattern that slopes up or down and is bound by an upper and lower trend line. The upper trend line marks resistance and the lower trend line marks support.
• Price channels with negative slopes (down) are considered bearish and those with positive slopes (up) bullish.
• For explanatory purposes, a “bullish price channel” will refer to a channel with positive slope and a “bearish price channel” will refer to a channel with negative slope.
• AXIS Bank has broken its bullish pattern and is facing resistance around 400, which is negative for short term
SUMMARY –
Looking at all the above points, we can conclude that AXIS Bank can be accumulated at current levels of 360 to 375. Second phase of buying can be done when AXIS bank is able to sustain its 400 level for few weeks. A medium-term target can be placed at 480 to 522 and long-term target of 600 can be achieved in few years. In Short term, we could see some pressure, but Axis Bank is a good Investment Prospect currently.
Trade active:
AXIS Bank reached 415 , 11% Gains from 375 in 2 days.