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

Swing Target 1 hit at 375
Slowly and steadily moving up


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