Zydus LifeSciences revesal - hammer and RSI Bullish DIvergence
Zydus Livesciences
Time Frame: Weekly
Name of Pattern: Hammer
View: Potential reversal
What is a Hammer Candlestick?
The hammer candlestick is found at the bottom of a downtrend and signals a potential (bullish) reversal in the market.The most common hammer candle is the bullish hammer which has a small candle body and an extended lower wick – showing rejection of lower prices.
The pattern indicates that the price dropped to new lows, but subsequent buying pressure forced the price to close higher, hinting at a potential reversal. The extended lower wick is indicative of the rejection of lower prices.
Current Market Price (20 May 2022) = 356.85
Name of Pattern: Hammer Breakout (344.60)
Technical analysis:
1. In weekly Time Frame at the bottom Hammer breakout confirmed at 344.60 in Weekly timeframe.
2. Trendline Brakout due aroun 360 -362
3. Stock is in range of 330-375 from last 12 weeks indicates accumulation between this levels.
4. RSI indicator: RSI BULLISH DIVERGENCE. This indicates potential reversal is due in zyduslifesciences at 362-362.
Possible entry : > = 360 -362
Stop loss : 346
Note : Same reentry in case of retracement.
Swing and long term Targets: 375-440-499-540 - 600 - 664 - 700
Time Frame: Weekly
Name of Pattern: Hammer
View: Potential reversal
What is a Hammer Candlestick?
The hammer candlestick is found at the bottom of a downtrend and signals a potential (bullish) reversal in the market.The most common hammer candle is the bullish hammer which has a small candle body and an extended lower wick – showing rejection of lower prices.
The pattern indicates that the price dropped to new lows, but subsequent buying pressure forced the price to close higher, hinting at a potential reversal. The extended lower wick is indicative of the rejection of lower prices.
Current Market Price (20 May 2022) = 356.85
Name of Pattern: Hammer Breakout (344.60)
Technical analysis:
1. In weekly Time Frame at the bottom Hammer breakout confirmed at 344.60 in Weekly timeframe.
2. Trendline Brakout due aroun 360 -362
3. Stock is in range of 330-375 from last 12 weeks indicates accumulation between this levels.
4. RSI indicator: RSI BULLISH DIVERGENCE. This indicates potential reversal is due in zyduslifesciences at 362-362.
Possible entry : > = 360 -362
Stop loss : 346
Note : Same reentry in case of retracement.
Swing and long term Targets: 375-440-499-540 - 600 - 664 - 700
Note
Swing Target 1 hit at 375Note
Slowly and steadily moving up
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.