GMR Infra Technical Analysis. Short Term Bearish Trend
Its an amazing sight to see patterns and mathematics following each other so beautifully. GMR Infra is following an ascending channel. I have marked two channels, one in dotted line format (inside channel), and the other one in simple line format.
After March 2020 downfall, it has made a peak which is close to extended Fibonacci level 1.618. I have used two sets of Fibonacci levels based on recent rally and 2020 fall. When you look at the fib levels of two different sets, you'll find how beautifully it has followed these levels, with a fractional standard deviation.
What are we looking at in the future?
The recent price action has made kind of inverted cup and handle pattern, which is suggestive of a bearish move is short term. The supports are placed at 27.30, 26.80-26.65 (this is basically a zone, very good support region), and then at trendline which is close to 24.80. The immediate resistances are at 29.50, 31.75, and 33.90-34.35 (this is basically a zone, very good resistance region).
This stock will fly when it breaks the channel and the resistance zone placed between 33.90 to 34.35. As of now, it might trace back to support region placed at 26-80-26.65, or if the bearish momentum turns out to be strong it might come down to trendline support at 24.80.
That's all about technical's of GMR Infra. Fundamentally, I'll be looking at its plan on reducing debt. Yesterday's results were promising, but still there is a long way to go.
Personally, I'll be looking for breakout to go long on this scrip, and also if it breaks below the lower band of the channel, then it might go into bearish mode or long sideways movement.
Disclaimer: The information provided herein is for educational purpose. Please consult your financial advisor before making any decision.
If you like the idea, give me a thumbs up and share it with others. You can choose to follow me too.
Comments and Criticism are welcome.
After March 2020 downfall, it has made a peak which is close to extended Fibonacci level 1.618. I have used two sets of Fibonacci levels based on recent rally and 2020 fall. When you look at the fib levels of two different sets, you'll find how beautifully it has followed these levels, with a fractional standard deviation.
What are we looking at in the future?
The recent price action has made kind of inverted cup and handle pattern, which is suggestive of a bearish move is short term. The supports are placed at 27.30, 26.80-26.65 (this is basically a zone, very good support region), and then at trendline which is close to 24.80. The immediate resistances are at 29.50, 31.75, and 33.90-34.35 (this is basically a zone, very good resistance region).
This stock will fly when it breaks the channel and the resistance zone placed between 33.90 to 34.35. As of now, it might trace back to support region placed at 26-80-26.65, or if the bearish momentum turns out to be strong it might come down to trendline support at 24.80.
That's all about technical's of GMR Infra. Fundamentally, I'll be looking at its plan on reducing debt. Yesterday's results were promising, but still there is a long way to go.
Personally, I'll be looking for breakout to go long on this scrip, and also if it breaks below the lower band of the channel, then it might go into bearish mode or long sideways movement.
Disclaimer: The information provided herein is for educational purpose. Please consult your financial advisor before making any decision.
If you like the idea, give me a thumbs up and share it with others. You can choose to follow me too.
Comments and Criticism are welcome.