BAJAJ HOUSING FINANCE LTD. SHORT TERM TRADING IDEA
This updated chart includes a **Falling Wedge pattern**, which adds a significant layer to the analysis. Here's a detailed breakdown:
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### **1. Price Action and Chart Patterns:**
- **Falling Wedge**:
A Falling Wedge is a bullish reversal pattern in which the price consolidates within a narrowing downward-sloping channel.
- The breakout above the upper trendline of the wedge (confirmed with volume) signals a bullish reversal.
- This wedge breakout aligns with the recent price surge above **₹141.50**, adding credibility to the bullish trend.
- **Breakout Confirmation**:
- The price has broken out of the wedge and is trading above the previous resistance of **₹141.50**, suggesting further upside potential.
---
### **2. Indicators and Supporting Signals:**
#### **(a) Volume:**
- The breakout is accompanied by a noticeable spike in volume, confirming the validity of the wedge breakout.
#### **(b) MACD:**
- **Bullish Divergence**: The price formed lower lows, but the MACD histogram formed higher lows. The breakout further validates this divergence.
#### **(c) RSI**:
- The RSI continues to rise, currently at **59.22**, approaching the bullish zone (above 60). This indicates increasing strength in the trend.
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### **3. Key Levels:**
- **Support Levels**:
- Post-breakout, the previous resistance at **₹141.50** now acts as immediate support.
- The next strong support lies near **₹128.26** (lower band of the breakout zone).
- **Resistance Levels**:
- The next resistance levels are at **₹152** and **₹160**.
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### **4. Observations and Conclusion:**
- **Trend Reversal**: The Falling Wedge breakout, confirmed by volume and bullish divergence, indicates a strong trend reversal.
- **Momentum Build-Up**: MACD and RSI are showing signs of increasing bullish momentum, which supports the continuation of the uptrend.
- **Trading Opportunity**:
- **Entry**: On retest of ₹141.50 or during dips.
- **Target**: ₹152–₹160 in the short term.
- **Stop-Loss**: Below ₹134.43 to manage risks effectively.
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This chart strongly suggests the start of a bullish phase, supported by technical patterns and indicator alignment. It's a good setup for traders looking to ride the breakout while managing risks properly.
---
### **1. Price Action and Chart Patterns:**
- **Falling Wedge**:
A Falling Wedge is a bullish reversal pattern in which the price consolidates within a narrowing downward-sloping channel.
- The breakout above the upper trendline of the wedge (confirmed with volume) signals a bullish reversal.
- This wedge breakout aligns with the recent price surge above **₹141.50**, adding credibility to the bullish trend.
- **Breakout Confirmation**:
- The price has broken out of the wedge and is trading above the previous resistance of **₹141.50**, suggesting further upside potential.
---
### **2. Indicators and Supporting Signals:**
#### **(a) Volume:**
- The breakout is accompanied by a noticeable spike in volume, confirming the validity of the wedge breakout.
#### **(b) MACD:**
- **Bullish Divergence**: The price formed lower lows, but the MACD histogram formed higher lows. The breakout further validates this divergence.
#### **(c) RSI**:
- The RSI continues to rise, currently at **59.22**, approaching the bullish zone (above 60). This indicates increasing strength in the trend.
---
### **3. Key Levels:**
- **Support Levels**:
- Post-breakout, the previous resistance at **₹141.50** now acts as immediate support.
- The next strong support lies near **₹128.26** (lower band of the breakout zone).
- **Resistance Levels**:
- The next resistance levels are at **₹152** and **₹160**.
---
### **4. Observations and Conclusion:**
- **Trend Reversal**: The Falling Wedge breakout, confirmed by volume and bullish divergence, indicates a strong trend reversal.
- **Momentum Build-Up**: MACD and RSI are showing signs of increasing bullish momentum, which supports the continuation of the uptrend.
- **Trading Opportunity**:
- **Entry**: On retest of ₹141.50 or during dips.
- **Target**: ₹152–₹160 in the short term.
- **Stop-Loss**: Below ₹134.43 to manage risks effectively.
---
This chart strongly suggests the start of a bullish phase, supported by technical patterns and indicator alignment. It's a good setup for traders looking to ride the breakout while managing risks properly.
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