Looking at the daily chart of BHEL, you can see a simple price action pattern which is explained below. (OPEN CHART FOR DETAILED EXPLANATION)
Firstly, it is visible that BHEL has given a brilliant bull trend from December'20.
Presiding the uptrend, an accumulation phase can be seen and then a breakout form that phase caused the uptrend.
Now, according to price action theory, the stocks' uptrend is firstly accompanied by an accumulation phase (as marked) and then a uptrend and then a distribution phase (as marked).
Following the distribution phase, weakness is expected in the stock. (OPEN THE CHART FOR ALL THE MARKED PHASES AND LEVELS)
To sum up, BHEL has first seen an accumulation phase, then a breakout from accumulation phase causing a good uptrend and now BHEL is seeing a distribution phase (consolidation after an uptrend).
Hence, it is expected that we can see weakness in the stock in upcoming days, given it breaks the distribution phase rectangle (marked) in a negative way.
If it breaks the distribution phase triangle from upside, one may look for buying opportunities.
I would recommend a 'SELL' signal (50% quantity sell) on BHEL for now.
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Firstly, it is visible that BHEL has given a brilliant bull trend from December'20.
Presiding the uptrend, an accumulation phase can be seen and then a breakout form that phase caused the uptrend.
Now, according to price action theory, the stocks' uptrend is firstly accompanied by an accumulation phase (as marked) and then a uptrend and then a distribution phase (as marked).
Following the distribution phase, weakness is expected in the stock. (OPEN THE CHART FOR ALL THE MARKED PHASES AND LEVELS)
To sum up, BHEL has first seen an accumulation phase, then a breakout from accumulation phase causing a good uptrend and now BHEL is seeing a distribution phase (consolidation after an uptrend).
Hence, it is expected that we can see weakness in the stock in upcoming days, given it breaks the distribution phase rectangle (marked) in a negative way.
If it breaks the distribution phase triangle from upside, one may look for buying opportunities.
I would recommend a 'SELL' signal (50% quantity sell) on BHEL for now.
FOLLOW IF YOU LIKE THE ANALYSIS.
LIKE AND COMMENT WHAT YOU THINK ABOUT THIS. COMMENT IF YOU HAVE ANY DOUBT ON THIS ANALYSIS
Thanks