BEML is trading near 200 DEMA support of 898 and 150 DEMA support of 890. Also the 50% retracement of entire move from 783 to 1019 comes at 900. Black dotted line shows one such swing low of 888 from where counter again started moving upward. Triangular breakout gap can be seen at 865 which should hold along with 873 (61.8% retracement) to ensure validity of the upmove. If counter close below 865 then we can expect stock to retrace 100% of the entire upmove.
It's a risky buy at this moment as all indicators are suggesting down move to continue. But as per Dow theory upmove can be corrected by 1/3 to 2/3 of the entire move and normally retraces to 50% of the move. However, it is to be noted that counter couldn't break previous high of 1035 to continue upward journey as per Dow theory.
Traders with risk appetite for value buy can buy in 900-890 zone with strict stop loss below 860 (1/3 of move)on daily closing basis.
It's a risky buy at this moment as all indicators are suggesting down move to continue. But as per Dow theory upmove can be corrected by 1/3 to 2/3 of the entire move and normally retraces to 50% of the move. However, it is to be noted that counter couldn't break previous high of 1035 to continue upward journey as per Dow theory.
Traders with risk appetite for value buy can buy in 900-890 zone with strict stop loss below 860 (1/3 of move)on daily closing basis.
Trade active:
posted low of 893. now trading at 922
Trade active:
After touching 923 counter fell to 892. From there it again bounced to 914 and then again fell to 896. 888 is the next support. If breaks then next support at 872 and 860. If Monday market opens below 888 but not below 885 then we'll exit long and reenter at 873 with sl of 858
Trade closed: stop reached