Ujjivan looks great for short term and medium term

Ujjivan Finserv has been trading in a range for the past couple of sessions. The interesting part is what is taking place inside the range. Various VSA concepts are visible. Selling climax candle has been identified, which is a sign of change in trend. Volume has decreased in the stock, when compared with the volume during the last weeks of July. This suggests that stronger participants are missing in the stock, and these participants are the ones which drive the prices with momentum. Volume expansion is very irregular and has no consistent pattern. Bullish wide range candles are also missing since the past couple of sessions. On 14 August, 3rd and 4th candle showed signs of supply with the presence of wick and volume. Price made a bearish pin bar on back of volume expansion and during the last hours of 14 August, sellers confirmed the same by driving prices down. The areas highlighted with red, show the presence of supply at the higher levels, and price has confirmed this by reversing from those levels of 243-245. If strong buyers are present, then they should and will drive the prices higher, with volume, and also absorbing the supply at the higher levels. Fibonacci retracement has been supported by price and volume, as the price made couple of tails near the Fibonacci levels of 50% and 61.8%, showing signs of demand. A bullish candle, with strong volumes, and a close near the 234-244 level, will completely engulf the 13:15, 14 August, candle, and will suggest the entry of buyers. Fibonacci will also be respected and traders with high risk appetite can go long at this point. But the supply wouldn't have been absorbed yet. 245 and above close on hourly candle will confirm the absorption of supply at the higher levels and this is where I am planning to go long. As this is a short term trade, I do not expect huge returns. Target for me is 265-267 zone as that is where some sort of SOS(sign of supply) is visible. Keep in mind a very important point. Compared to the volumes during the rally from 22 May to 8 July, where the volumes were exceptional and price was supporting the up move, the volumes in the current short term down trend are very low and suggest that, looking at the larger picture, strong sellers are not present in this stock, and the current short term down trend is on back of relatively lower volumes, suggesting that current trend is just retracement, and the overall up trend is still intact. Given this, the target can be stretched to 290-295 levels. Current trend shows exhaustion of buyers for short term and profit booking.
This is an educational post and all the opinions provided above and on charts are simply speculation. Nothing is 100% in stock market. Breakout of the range, on back of exceptional volume will confirm what I have said above and then price should move higher with momentum. Let's see how this plays out.
Consult your financial advisor before taking trades
I do not recommend taking trades according to my analysis as you may incur loss, for which I am not responsible.
Trade carefully
Grateful🙏

Comment:

I have taken position at 249.25. Today's pullback was on back of low volumes, and Ujjivan will reach levels of 255,265 in the coming sessions. 2 upthrust candles, in today's session, show the presence of buyers.

Comment:

Target reached!