This is weekly chart of TVS MOTOR (CMP @ 553.45) which looks good for a long trade based on following observations:
1. A trendline has been drawn which has been tested for its reliability many a times as established support as shown on the chart. This established trendline once again was tested on 8th Oct 2018 which also coincides with key retracement level of 61.8% as shown on the chart.
2. Counter trendline which acted as resistance many a times, has also broken out.
3. Bullish Harami was formed in prior week starting 22nd Oct 2018 followed by bullish confirmation candle in the last week.
4. Price reversal is witnessed post bullish divergence on RSI as shown on the chart.
Hence, it could be a good long trade with stop @ 524 and then trailing the same to ride the trend.
Happy trading !!!
1. A trendline has been drawn which has been tested for its reliability many a times as established support as shown on the chart. This established trendline once again was tested on 8th Oct 2018 which also coincides with key retracement level of 61.8% as shown on the chart.
2. Counter trendline which acted as resistance many a times, has also broken out.
3. Bullish Harami was formed in prior week starting 22nd Oct 2018 followed by bullish confirmation candle in the last week.
4. Price reversal is witnessed post bullish divergence on RSI as shown on the chart.
Hence, it could be a good long trade with stop @ 524 and then trailing the same to ride the trend.
Happy trading !!!