ITC : Bullish Divergence on Pullback

raj_rishav Updated   
ITC is one stock that is exhibiting 4 strong buy signals:

1. Price Action - The stock has been trading in a price action value area as indicated in the box. Can zoom out to get a better view. See the linked ITC idea on how to exploit it best.
2. Regular Bullish Divergence - There is a clear bullish divergence as indicated on chart.
3. Declining volumes also confirm the divergence.
4. Pullback from 50 DMA - The stock has taken continuous support from the 50 DMA since its uptrend in May and unless its breaking that trend due to a significant correction in the Market over the next week, the pullback offers a good entry point.

So I would be going long on CMP with a SL at 192.
Risk averse may want to take positions above 195 (50 DMA).

Immediate targets would be 196.5, 198, 200, 202.
If it sustains above 202 on the hourly chart - there is a gap to fill opening targets 207, 210.

P.S. I see a lot of traders here posting statutory warnings about how they aren't responsible if the reader loses money by following the idea blindly. Same Pinch!

If it breaks with conviction below 192, will initiate short positions
Trade active:
Buy at 193
Trade active:
Trailing SL modified to 194
I use VWAP as Trailing SL if anyone's curious
Trade closed: target reached:
Trailing SL hit
I will re-enter long positions at 193 levels


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