1. Indiabulls Housing Finance seems to have found a bottom after the covid crash in March 2020, forming an ever since, and recently giving a breakout with decent .
2. There has been an increase in not seen before post 2020 suggesting interest in stock. Currently price is retracing back to .
3. The pullback in price has decreasing compared to the breakout suggesting that this is possibly not a throwback into the triangle, but rather, a re-test of previous resistance as support.
4. Weekly 21 and 55 is currently acting as support. Note that there is a cross of the 21 and 55 WEMA which is a positive sign for continuation.
5. Price is trading above Point of Control (POC) of the which is another positive sign.
6. Currently price is nearing but a pullback to even 0.5 retracement can be possible.
7. Weekly is approaching 50 which means price is cooled down signficantly. price may consolidate further or retrace pulling the down to 43 levels and find support on the trendline which has been forming since more than one year, and momentum will still be preserved.
What to expect :
1. Price may find support at current levels (235-245) which will be good for continued momentum, as is approaching oversold levels on .
2. in case price doesn't hold support at 235 levels, price may continue to retrace to the POC level (220) which is also strong support, and price will continue to form Higher Highs and Higher Lows if 220 support holds.
3. If price fails to hold 220 levels, last stand for bulls would be 190 levels which is the next strong and trendline support from . 190 would be the bulls' final fighting stance to preserve continued upward momentum.
Position size build up can be as follows (this is just an example)
1. 30% of position size at CMP and if there is a reversal from 235-245 levels further 70% can be deployed.
2. In case 235-245 support fails to hold, another 30% can be deployed at 220 levels and the rest 40% after reversal is confirmed.
Targets and Stop Loss
1. Conservative/swing trade stop loss (1-3 months) = 218 which is POC invalidation point.
2. Positional trade stop loss (3-6 months) = 179 which is trendline support breaking point beyond which trade setup will be invalidated completely.
3. First target for swing trade = 310
4. Second target for swing/positional trade = 360
5. Third target for positional trade = 465
6. Price can even go back to previous All Time Highs if trade is kept for a longer period of time.
Please manage position size based on risk appetite and have a suitable risk to reward ratio of your choice.
Note: This is not financial advice, this post is for educational purposes only.
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