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
Comment:
Swing Target 1 hit at 375
Comment:
Slowly and steadily moving up