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Radico Khaitan, Buying Opportunity..!!

Long
NSE:RADICO   RADICO KHAITAN
As of 20/5/21
Current Trend: Sideways
Resistance levels: Around 566 price levels (Broken today with volume )
Patterns formed: Flag pattern
Single candlestick pattern: Bullish marubozu
RSI: 66
MACD: Short line over Long line

Analysis: Flag pattern's upper resistance level , as well as horizontal resistance level , is broken on 20/5/21 with very high volume and a bullish marubozu candlestick pattern is also formed. Moreover, RSI is above 60 and MACD is also giving a positive signal. 5 Day MAE is also above 13 days and 26 days Exponential moving average .
All such indications suggest going for a long position (Buy).

**A slight correction can be seen in the stock price in the coming days up to 578-580 levels before moving in the upward direction.

Stoploss should be around horizontal resistance level .. ie . 565-567 price levels.
The initial Target can be up to 10%.


NOTE: Buy the stock only when the overall market is positive. If the market tomorrow opens negative, then chances are that the stock will correct up to the mentioned level.

Feel free to comment below your ideas..

Comments

RSI MEIN KON sa level ya range sahi hoti hai one day chart pr jo sahi rahti hai RSI pr and macd mein kon si cheej dekhni chaiye ??
Reply
@dm452853, The level of RSI depends on different market conditions and trends. If a particular stock is in the upward trend, then buying opportunity can be made when after the cross of 60 RSI level as it shows the strength in the stock and If a particular stock is in the downward trend, then sell opportunity can be made when after the down cross of 40 RSI level.
If the stock is in a Sideways trend, then the strength of the stock will lie between 40 and 60 levels of RSI.

Macd (Histogram) and EMA are used to determine potential reversal signals. For example, if the stock is in an upward trend but the MACD histogram is decreasing day by day, then it indicated that there can be a possibility of a trend reversal in the near future.
MACD fast and slow lines crossover gives buy and sell call but we need to keep in mind that only look for crossovers that are formed at extreme points and ignore the rest of crossovers to prevent entering false signals.

Also, keep in mind that MACD only works efficiently in the trend market. It gives many false signals in a sideways market. For the sideways market, we use different indicators like stochastic oscillator.

Note: Never initiate a trade only on the basis of RSI or MACD. These all indicators should be combines with other indicators before getting to any conclusion.

Hope you find all the answers...
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