raj_rishav

ITC : Bullish Divergence on Pullback

Long
NSE:ITC   ITC LTD
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!

Comment: If it breaks with conviction below 192, will initiate short positions
Trade active: Buy at 193
Trade active: Trailing SL modified to 194
Comment: 194.5
Comment: I use VWAP as Trailing SL if anyone's curious
Trade closed: target reached: Trailing SL hit
Comment: I will re-enter long positions at 193 levels

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