Scrip has seen after exceptional high buying volume due to which it had taken off to resistance (C) level. Thereafter, following reversal of trend, the scrip has come back to it prior resistance levels where Selling all positions to liquidate holdings in the market is not uncommon.
Exhaustion gaps
Exhaustion gaps are quickly filled as prices reverse their trend and volume dries up. Likewise, if they happen during a bull move, some bullish euphoria overcomes trades, and buyers cannot get enough of that stock. The bearish trend is supported by profit booking by traders/swingers who were at the top of trend.
However, The scrip can take bullish reversal again with runaway gap in motion as firstly, it has come down rapidly in oversold situation
Secondly, Doji had formed near prior resistance levels which still can be taken to uncertainty and tug of war fight amongst traders
Exhaustion gaps
Exhaustion gaps are quickly filled as prices reverse their trend and volume dries up. Likewise, if they happen during a bull move, some bullish euphoria overcomes trades, and buyers cannot get enough of that stock. The bearish trend is supported by profit booking by traders/swingers who were at the top of trend.
However, The scrip can take bullish reversal again with runaway gap in motion as firstly, it has come down rapidly in oversold situation
Secondly, Doji had formed near prior resistance levels which still can be taken to uncertainty and tug of war fight amongst traders
Trade active:
The scrip is at crucial levels of support created after exhaustion gaps however
1) Spinning top candlestick has formed at the end of bearish trend which usually results in bullish reversal where the buyers are sellers are almost equal, that’s why it is considered neutral.
2) %william showing uptrend from oversold situation
3) Double bottom reversal in place
Q1 results and YoY comparison coming on Aug, 13 would majorly add to the trend going either ways
www.ujjivan.com/pdf/...Results_17072017.pdf
1) Spinning top candlestick has formed at the end of bearish trend which usually results in bullish reversal where the buyers are sellers are almost equal, that’s why it is considered neutral.
2) %william showing uptrend from oversold situation
3) Double bottom reversal in place
Q1 results and YoY comparison coming on Aug, 13 would majorly add to the trend going either ways
www.ujjivan.com/pdf/...Results_17072017.pdf
Comment:
You can ignore previous chart..Here is the right one
The investors have shown confidence in the company even after not good results as the company has managed to clear up their books during this interim period showing forecast of good results in coming quarters, which has reinforced the bullish trend with volume of buying increasing over time
Will wait for confirmation to enter trade again after the scrip breakout from neckline aiming towards target price or sign of continuous bullish trend