Nifty AnalysisHistory repeats itself and that is also true for the stock market technical analysis . In fact, much of the technical analysis revolves around historical patterns which repeats themselves time and again. We will discuss one such pattern in this analysis.
Friday was a big day. Market opened with a gap and trended on the upside. How often has this happened in the background? I have gone not far back but till October 2021.
In the last 1.5years I have looked for a few criteria. Market must be trending down that is, forming lower lows and lower highs. Market must break a minor or major swing high with a huge gap. The gap day must be 1.5% or higher in length and close strong (near the high of the day).
I have found that these conditions were met only three times.
The first was in May 2022. Market broke a minor structure at A with large gap and closed strong. But it could not follow through and just managed to fill a bearish gap on the left. Although there was a potential double bottom in the left, yet it just retested the breakout level and broke down to new lows.
The second such event happened in July 2022 at B. Market broke a larger swing high with same conditions as above and rode vertically up to a previous resistance level . It was hell of a ride without any retest (which lately happed in September 2022).
This rare pattern has repeated for the third time on last Friday. All the previous conditions were met.
Now the question is that, can this event lead to a reversal or it is just another support bounce from September 2022 lows?
I would say that the break of a minor structure point does not necessarily means a change in trend. Perhaps it would be too early to announce trend reversal.
However, I do not negate some follow through till the gap zone on the left (17500-600) which will be the first area that may offer strong resistance to the market (as it did at A).
Market needs to retest in order to check the strength of buyers and break above 18135 levels (which may take some time) to further clarify its desired direction.
Thanks for reading.
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Breakouts
Apollo tyresApollo tyres, is looking currently in good momentum upside, it has broken resistance trendline along with good intensity of volumes along with challenging upper Bollinger band, also trend indicator macd is supporting same trend right now.
As per Elliott wave projection it shows possibly we are in wave 3rd of wave 5th on daily time frame, which is a cautious sign to be ready for profit booking phase in near term and be very alert to book profits at near targets, also RK's mass psychological indicator is suggesting to go long, some highlights are shared below one can go through them to understand this study.
wave structure possibilities on daily chart
RK's mass psychological indicator signals positive
chart pattern breakout with good volumes
macd in daily positive crossover above zero line
macd running positive in weekly
rsi breakout in daily and its uptick above 60
price challenging upper bands on daily chart
dmi adx positive strenght
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Disclaimer.
I am not sebi registered analyst.
My studies are for educational purpose only.
Please Consult your financial advisor before trading or investing.
I am not responsible for any kinds of your profits and your losses.
Breakout in KOTAKBANK in Weekly TimeframeBreakout in KOTAKBANK in Weekly Timeframe
Entry - 1969
Target - 2255
The stock might retest before moving up.
DISCLAIMER: The ideas shared are only for educational purpose. The markets are very volatile, so plan your trades accordingly. Please trade with stop loss. I am not SEBI registered.
FINPIPE _ Retest of breakout - low risk and high reward tradeThe stock was trading in a highly negative manner, but the downward trendline was broken with good volume, and a retest of the trend line followed the breakout.
This trade can be viewed as a retest of a breakout; it will be low risk and high reward trade.
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Thank you
Amarajabat multiple breakouts stay tuned! YES!!! this is a trend reversal
18 months old trendline breakout
Huge volumes at breakout
Breakout after numbers
head and shoulder breakout above 588
Above 50 ema
Above 200 ema
Wait for a confirmation of resistance breakout and we can go long!!!
Power is backHBL Power systems looking attractive at this point.
Inverted H&S breakout is been observed with very good volume. Close above 105 which was previous high is a positive sign for stock to further rally.
It will be good to accumulate if stock comes around 105 range with targets given on the charts.
#Disclaimer:-View shared is for educational purposes only. Kindly study on your own before making any trading or investment decisions.
Breakout in RATEGAINBreakout in RATEGAIN
Entry: 305.05( CMP )
Target 1: 400
Target 2: 520
You can take an entry now or wait for a retest.
DISCLAIMER: The ideas shared are only for educational purpose. The markets are very volatile, so plan your trades accordingly. Please trade with stop loss. I am not SEBI registered.