BAJAJ FINANCE HAS BEEN CONSOLIDATING SINCE QUITE SOME TIME, FORMING A VERY STRONG BASE AROUND 2000. OVER THE YEARS 1950-2000 LEVEL HAS BEEN AN IMPORTANT LEVEL AS ITS FROM HERE WHERE THE INITIAL RALLY STARTED.EVEN ON THE WEEKLY TIME FRAME 1950-2000 LEVEL IS VERY IMPORTANT. BAJAJ FINANCE SEEMS TO BE MAKING U SHAPED RECOVERY, WHICH IS A VERY STRONG RECOVERY UNLIKE V SHAPED RECOVERY. WHICH SHOWS THE STRONG BASE. THE TECHNICAL INDICATORS THAT SHOWS THE STRENGTH ARE :
1. VOLUME BREAKOUT - THE VOLUME OVER THE PAST DAYS AND WEEKS IS WAY MORE THAN THE AVERAGE VOLUME OF BAJAJ FINANCE, INDICATING A LOT OF INVOLVEMENT OR INTEREST IN THE STOCK. I HAVE MARKED THE VOLUME BREAKOUT WITH AN ARROW IN THE CHART.
2. U SHAPED RECOVERY - THERE IS EITHER A V SHAPED OR A U SHAPED RECOVERY. V SHPAED RECOVERY DOES NOT SUSTAIN FOR LONGER PERIOD OF TIME AND THERE ARE GREAT CHANCES THAT THE BOTTOM LEVELS ARE BROKEN. IN CASE OF A U SHAPED RECOVERY, THE STOCK FORMS A VERY STRONG BASE WHICH WE CAN SEE HERE.
3. RSI - RSI, WHICH IS THE MOMENTUM INDICATOR, SEEMS TO BE BREAKING OUT OF THE 40 MARK WHICH TELLS US THAT IT IS PICKING UP MOMENTUM. I HAVE MARKED THE 40 LEVEL IN THE CHART.
4. BOLLINGER BANDS - BOLLINGER BANDS WHICH IS THE VOLATILITY INDICATOR HAS SQUEEZED ALREADY AND MAYBE PREPARED TO SQUEEZE OUT OF THE BAND FOR NEW HIGHS.
5. SUPPORT RESISTANCE- THERE ARE 2 RESISTANCE ZONES FOR BAJAJ FINANCE AS OF NOW . THE STOCK SEEMS TO BE REVERSING FROM THIS RESISTANCE LEVELS. IF IT MANAGES TO BREAK THE FIRST RESISTANCE ZONE(BLACK LINE) THEN THAT MIGHT BECOME THE SUPPORT ZONE AS IT EDGES UPWARDS.
ONE CAN TRADE BY MAINTAINING A STRICT CLOSING BASIS STOPLOSS OF 1950 .
*THIS IS MY VIEW AND I AM NOT REGISTERED WITH SEBI*
1. VOLUME BREAKOUT - THE VOLUME OVER THE PAST DAYS AND WEEKS IS WAY MORE THAN THE AVERAGE VOLUME OF BAJAJ FINANCE, INDICATING A LOT OF INVOLVEMENT OR INTEREST IN THE STOCK. I HAVE MARKED THE VOLUME BREAKOUT WITH AN ARROW IN THE CHART.
2. U SHAPED RECOVERY - THERE IS EITHER A V SHAPED OR A U SHAPED RECOVERY. V SHPAED RECOVERY DOES NOT SUSTAIN FOR LONGER PERIOD OF TIME AND THERE ARE GREAT CHANCES THAT THE BOTTOM LEVELS ARE BROKEN. IN CASE OF A U SHAPED RECOVERY, THE STOCK FORMS A VERY STRONG BASE WHICH WE CAN SEE HERE.
3. RSI - RSI, WHICH IS THE MOMENTUM INDICATOR, SEEMS TO BE BREAKING OUT OF THE 40 MARK WHICH TELLS US THAT IT IS PICKING UP MOMENTUM. I HAVE MARKED THE 40 LEVEL IN THE CHART.
4. BOLLINGER BANDS - BOLLINGER BANDS WHICH IS THE VOLATILITY INDICATOR HAS SQUEEZED ALREADY AND MAYBE PREPARED TO SQUEEZE OUT OF THE BAND FOR NEW HIGHS.
5. SUPPORT RESISTANCE- THERE ARE 2 RESISTANCE ZONES FOR BAJAJ FINANCE AS OF NOW . THE STOCK SEEMS TO BE REVERSING FROM THIS RESISTANCE LEVELS. IF IT MANAGES TO BREAK THE FIRST RESISTANCE ZONE(BLACK LINE) THEN THAT MIGHT BECOME THE SUPPORT ZONE AS IT EDGES UPWARDS.
ONE CAN TRADE BY MAINTAINING A STRICT CLOSING BASIS STOPLOSS OF 1950 .
*THIS IS MY VIEW AND I AM NOT REGISTERED WITH SEBI*