H&S on higher time frame in Bajaj Finance.
Updated
The stock is trading around the neckline of the pattern and on the daily charts it has closed below the zone.
The weekly charts are also showing some negativity and there are chances it may move below as there is a head and shoulder pattern on the higher charts.
Entry can be created in the stock once the weekly low is breached and a daily candle close below it.
Bajaj Finance is trading below the weekly 20 ema and pattern formation is there.
There are 2 scenarios in the stock.
First, it can retest the zone of 50-61.8% fibonacci and give a break down.
Or after a consolidation it starts moving below the neckline.
Targets and stop losses will be created once the entry 1 or 2 is confirmed.
Entry one can be created once there is a bearish price action in the fib zone.
Targets :- 6875, 6520, 5900
Stop Loss :- 7360
In case of the second entry first target will act as a break down level with stop loss of 6910.
Position should be created with a setup confirmation and let the stock movement decide which side to move.
Wait for the price action and entry level to be triggered. Positional and swing trades in deravatives can be created.
The weekly charts are also showing some negativity and there are chances it may move below as there is a head and shoulder pattern on the higher charts.
Entry can be created in the stock once the weekly low is breached and a daily candle close below it.
Bajaj Finance is trading below the weekly 20 ema and pattern formation is there.
There are 2 scenarios in the stock.
First, it can retest the zone of 50-61.8% fibonacci and give a break down.
Or after a consolidation it starts moving below the neckline.
Targets and stop losses will be created once the entry 1 or 2 is confirmed.
Entry one can be created once there is a bearish price action in the fib zone.
Targets :- 6875, 6520, 5900
Stop Loss :- 7360
In case of the second entry first target will act as a break down level with stop loss of 6910.
Position should be created with a setup confirmation and let the stock movement decide which side to move.
Wait for the price action and entry level to be triggered. Positional and swing trades in deravatives can be created.
Trade active
The stock has given a nice downside movement and it may hit the first target tomorrow or day after.
Volume too are supporting the trend.
On retracement of the break down level new positions can be created or on breaching the next support levels of 6500.
:)
Trade active
The stock closed near the 50% fib levels. Even there is aformation of a bearish pennant.
If new position is to be added, add only after there is a break down of the pattern with the first target of recent low of 6535.
Positional short trades can be carried until there is a break out of the pattern.
It is showing a retest after reaching a low of 6535. Still the target of 6500 is on.
Wait for the price action of entering the move.
:)
Trade closed: target reached
Intraday targert of 6535 is almost done and positional trades may be carried on.If the market support the rally, this week it can test and close below the first target.
Place the stop loss above 6750 and carry on the trade.
Note
The stock is trading around the lower levels for last few days and overall market is also looking bearish.
If 6500 levels is cleared and sustained, intraday trade can be initiated upto the target of 6350 levels.
Positional trade has not hit the target and not even the Stop loss.
One can exit some quantities around 6350 levels and if this support is also cleared final target can also be reached this week.
Target for intraday :- 6350
Entry :- Below 6500.
Watch for a price action on hourly charts and enter trade only for a bearish move.
Trade closed: stop reached
Positional trades in the stock has hit the trailing SL as it has closed above the SL level.
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