Indigo - Consolidation (Support & Resistance zone analysis)
Updated
Indigo is moving up and down in a consolidation region.
After breaking the 1700 levels recently it has created 1750 - 1765 as its major resistance zone.
The evening star candlestick pattern can be seen on Friday on the chart but the volume of selling was not more than the previous day which is generally expected. It means the retailers have exited their positions from Indigo and not the big player.
The next support seems to be with the trend line and from there if a candle with good volume is seen then the price can move towards 1800 levels. Considering the result is pending on 25 Jan for Q3, the price can have surprising moves as well.
It will be interesting to see how the confluence of Earnings, Candlestick, and Support Zone work together.
After breaking the 1700 levels recently it has created 1750 - 1765 as its major resistance zone.
The evening star candlestick pattern can be seen on Friday on the chart but the volume of selling was not more than the previous day which is generally expected. It means the retailers have exited their positions from Indigo and not the big player.
The next support seems to be with the trend line and from there if a candle with good volume is seen then the price can move towards 1800 levels. Considering the result is pending on 25 Jan for Q3, the price can have surprising moves as well.
It will be interesting to see how the confluence of Earnings, Candlestick, and Support Zone work together.
Note
As the trade is near support zone before results. The right time to enter would be below 1550 levels. Today's low was 1578.Keep an eye on this.
Note
We have got an entry at 1560 today. Just above the support zone. Let's hope for the better results today.Trade closed: target reached
Targets of 1640 Levels have already reached. We got 2 trades at the same levels. Trade 1: 1560 (Buy) and sell on (1640) levels. By the day end the stock came again at the support range and we bought it again at 1560 levels.trade 2: 1560 (Buy) and Sell on 1640 today as well.
Hence closing this trade.
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