Positional Long: Nestle India Nestle is trading at a very good support zone after giving a health correction of ~22% ,supported by a multi year trendline since 2018.
Current price structure is following a Ascending Channel Pattern & its retesting an important breakout level i.e 2100, which used to be an area of supply prior to the breakout.
It has always respected the 200 EMA in higher time frame every time and current price is trading near to its 200 EMA providing a good RR ratio.
It has formed a head & shoulder pattern also, but its trading near the base of a major support level so the probability of this pattern turn around is low, this can potential lead to a trap which might be a favorable condition to initiate a long position, but as its a assumption position to be initiated with a strict SL if H&S pattern gets activated.
Nifty FMCG index is also trading at a major support which strengthen the conviction for initiation of long setup.
Refer the FMCG sectoral analysis below:
⚡Note: This is just for analysis purpose, please do your own research before punching any orders.
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