Current Trend: Sideways
Resistance levels: Around 566 price levels (Broken today with )
MACD: Short line over Long line
Analysis: Flag pattern's upper , as well as horizontal , is broken on 20/5/21 with very high and a pattern is also formed. Moreover, is above 60 and is also giving a positive signal. 5 Day MAE is also above 13 days and 26 days .
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 .. 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..
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...