Cumminsindia has broken the downward channel and has enterd in to the upwards moving channel which implies the script is bullish . Buy above 900 with the stoploss of 895. Targets are 915, 920 and 930. Use trail stop to protect your profit.
Trade closed: target reached:
@ 900 on 3/21/17. All targets hit on 3/24/17 Price took support on the upper trendline of downward channel and bounced back.
Vanathi, if you see a long term chat, you would find that the stock has been witnessing a sideways movement making higher lows and lower highs. The internal built of the first leg from the low of 746.15 to the high of 947 looks like an impulsive movement and the same situation is with the movement from the low of 747.55 to 921, as shown by you in the red parallel channel. Now, if you see from the below shared chart, whereby a resistance line has been drawn conjoining the two tops of these two impulsive movements, 947 and 921, lets name those impulsive movements wave 'a' and 'c' for time being, the stock has reached/touched the resistance line and may find a strong resistance over this point.
@vanathi, even i am under learning process and not an expert on the same. still with the help of some technical indicators and EW principles guidelines i try to analyse the position of the stock. sometimes i may get right sometimes i don't, but on a path to make improvement on my study and analysis techniques.
@vanathi, actually I went through that and thought it was in connection with my query above but then thought there are others who raise such queries to you, so, again thought that it might be just a coincidence. however, thanks for your reply to my queries and i would surely try to improve in this regard. Thanks & regards!