AXISBANK
Parallel Channel- A great tool for Identifying Trends
A parallel channel which can also be termed as a price channel is a tool to identify a share’s price in bounded parallel lines. It can be horizontal, ascending or descending. It’s a great tool for those traders who believe or trades with the idea of Price action.
A parallel channel can be formed when the price of a security is restricted by supply and demand and can be upward, downward or sideways trending. It shows the trend on which the security might be headed towards or on the verge of breaking it to reverse its direction. It can occur on various time frames and can be created on various instruments like stock, mutual funds, ETFs etc.
The two parallel lines act just like the Resistance and Support. The upper line acts like the Resistance and the lower line acts like Support. A lower trendline is when the price pivots higher, and an upper trendline when the price pivots lower. The steepness of the parallel lines decides the direction of the price it moves.
Ascending channel will be bounded by positive lines indicating that the price is trending higher with each closing of the bar. Likewise, a breakdown of the lower line means that price has moved significantly and now it will see some profit booking and makes a good opportunity for profit booking.
Descending channel indicates that price is trending lower with each bar it is forming. Whereas a breakout of the upper channel conveys that the trend has changed and now the price will move upwards.
As in this example of Axis Bank Daily chart, you could see a Descending Parallel channel which did retrace to its lower price channel and that makes it a good entry point after which it broke the upper channel with good volume confirming its upwards rally.
AXIS BANK - CMP: 708 Breakaway GapAfter completing the bearish breakout target of the channel, Price is moving in a channel. It has created a Breakaway gap pattern on the daily chart. It is indicating bull run ahead. Increasing delivery volume also confirming the same. We can expect price movement up to 730/735 in the near term also expect price movement up to 800/820 in the mid-term.
Axis BankAxis Bank (NSE cash)
LTP: 694.70
Support: 693.80
Resistance: 700.45
Daily charts (long term)
The candle has taken support on the 20 DEMA.
There is a clear uptrend since 22nd April
MACD is neutral because it is trading the bear zone but has green bars and there's a reversal as well.
RSI too is trading above 50 which is a good sign.
***Bullish
Hourly charts (medium term)
the candles have taken support on the 20 DEMA here as well.
RSI is making a bullish pattern called the rounded bottom. We can see a breakout once this pattern is completed.
MACD is in a correction mode in the bull zone.
***Bullish
15m charts (short term)
Bullish engulging pattern along with a confirmation candle can be seen.
MACD has a bullish reversal.
RSI is in an uptrend heading towards breaking the 50 mark.
***Buy for a short term target of 710 / 715
Axis Bank Double bottomAxis Bank at good support and made double bottom, Stock may touch the levels mentioned in the chart.
The double bottom looks like the letter "W". The twice-touched low is considered a support level.
The double bottom pattern always follows a major or minor downtrend in a particular security, and signals the reversal and the beginning of a potential uptrend.