I am unable to understand the reason why is ITC underperforming because there are so many signs in the charts.
1. The candles in the have made a patter called triple bottom which means that ITC are supposed to fly but there is a resistance at 212 levels.Next resistance can be seen at 216.10 but the pattern means that ITC have collected a lot of strength here and we should soon see a price tag of 220 / 226 / 230.
2. Divergence indicator in on the has issued a Hidden Bull sign.
3. There is an pattern on the hourly chart which again is a but has broken the 50 levels downwards so if we see a positive opening and one push with a decent momentum this can be changed to a sign in no time.
4. which is a 15m chart is a little scary as the pattern seen is a and this is a . It is opposite to the being made in the but looking at the bigger picture, I get a lot of confidence. One breakout and the pattern can be broken.
5. will form a if we get a gap-up opening as well.
The lot size of ITC Future is 3200 shares. This is a very big lot and you can trade in cash if you are not comfortable to hold such quantity or take such big risks. The stop should be maintained below 201 levels.