Clearly divergence in MACD and RSI are telling the forthcoming weakness that too at the level of multiple resistance so one can take chance by shorting the stock. STOP LOSS Little above the recent high. Just to mention that divergence at the top are relatively tricky comparing to formed at bottom.
BAJAJAUTO completed the blue Gartley and the Cypher pattern.
In the Cypher Pattern, it Can move till X if it crosses above D,since there seems to be a consolidation/flag/range at D level..
A breakout from the Flag near D will decide the direction.
Bajaj Auto - The stock as broken out of major support zone as well as broken a long term ternd-line.
There is a window (gap) created wich indicated high selling pressure and the window will act as a resistance as well.
Keeping our stop above the window and target in the next support zone, the risk to reward comes to be 2.5.
NSE:BAJAJ_AUTO
Head and Shoulder formation on Bajaj Auto and MACD seems strong bullish trend.
Trade:
Buy above = 2846
Target 1 = 2867
Target 2 = 2884
Stop loss = 2825
Symmetric Triangle on Bajaj Auto and may break either side.
Trade:
Make Side:
Buy above - 2788
Target - 2904
Stop loss - 2685
Break Side:
Short below - 2550
Target - 2396
Stop loss - 2615
Bajaj Auto has been trading in down trend and trading in a channel although there have been false breakout but it entered in to the channel, as in my previous analysis which was bearish flag patter and it completed almost 80% flagpole, it has now trading at the edge of channel resistance and may go further down or breakout may occurs. traders may enter long after...
Bajaj Auto broke the up trend journey and has turned bearish. now it seems technically week and struggling to move upward. it formed a bearish flag pattern which also confirmed and approaching to flag pole target which is somewhere between 2417-2420. Trader may go further short in this stock with a target of 2417.00 in near term or may be in a week.
Bajaj Auto breaking the channel and retesting the resistance repeatedly and struggling to break resistance 2860.00, it is looking weak to go further and may approach to its near term support and 50% retracement to somewhere 2650-2648. risky trader may go short at current level conservative trader should enter above 2870.00.
The stock is getting support at up sloping trend line. Probably we can use this pull back for entering a long at this level. My idea has following justification
1. closed out of downtrend regression channel
2.Made an engulfing covering the previous candle completely.
3. Trend line support.
4. Mostly at this level of RSI it changes the trend.
5. Trend reversal...
Today, it was totally a buyers show. Buyers actively took the prices above the previous resistance level of 2940 and now it shall move further up and reach to 3000-3050 levels before the profit booking takes place. It is a good time to enter with stoploss at 2870.
