HDFCAMC
Hello all!
HDFCAMC has been stuck in a triangle since Feb 2019. It has been consolidating ever since and has now finally broken the upper resistance trendline of the triangle.
This I believe is a good place to go long. I have three major reasons for that. The first being pure price action i.e. a breakout with good volumes. Second, the stock has support from the strong 50 week EMA. Also if you switch to the daily TimeFrame, there is support from the 200 EMA as well.
If you see closely, you can find that along with being stuck inside the triangle, it is also stuck in a channel. It is currently at the bottom of the channel and ready for a swing reversal. We can set the upper channel trendline as our target which will roughly be near the 3750 levels. Also, the Reward to Risk ratio is decent enough to go long!
With a triple confluence coupled with booming nifty, chances of this trade failing seem really bleak!!
Do let me know your views on this!!
*NOT A CALL*