Description
⋅ Bajaj Auto recent created its 52-week high and has formed a doji on the weekly time frame.
The stock for previous 6-7 weeks couldn't close above 4092.
It has gained around 10% in last two months and seems to retrace before giving a break out the resistance level.
The stock is for the bearish movement and can be carried for a nice target.
Setup for the trade:-
1. Closed below its 20 DMA.
2. High volumes.
3. A doji on weekly time frame.
The stock can be shorted once it takes out the level of 4010.
If the stock closed below 4010 on hourly time frame the trade can initiated as the resistance level and its hourly 200 ema will be taken out.
Target :- 3956, 3900
Stop loss :- 4028
The trade can be carried for a swing trade and nice target can be attained.