Havells: Weekly channel, Daily head and shoulder, divergences..

Jun 23, 2020

A weekly channel completes its 3 wave and is at the upper end of the channel waiting for a breakout because just before there at the weekly chart, there was a bullish divergence in the MACD histogram. In the daily chart there is a head and shoulder pattern and the prices are at the neckline. An entry on the breakout would be suggested as that would be a breakout in the Weekly channel too! If you draw a horizontal line from the previous support, the change in polarity line is here too. So amongst a lot of resistances, if the prices take off the neckline, the probability of this trade hitting highs is higher! I would wait for a breakout before any bias as the level now is a strong resistance and it could fall if does not break it if the bearish divergence in the MACD histogram is confirmed in the daily chart.

So plenty going on! watch and trade!