Candlestick analysis focuses on individual candles, pairs or at most triplets, to read signs on where the market is going. The underlying assumption is that all known information is already reflected in the price. The technique is usually combined with support & resistance. Each candle contains information about 4 prices: the high, the low, the open and the close. A candle body reflects the net price movement between open and close while the wicks show reversals that occurred within the timeframe of the candle.
Each candlestick, therefore, provides an easy-to-decipher picture of the price action. The length of the wicks versus the length of the body in combination with whether a candle is bullish or bearish, can be used to determine a signal for the price action to come. Common candlesticks that are used in this analysis are dojis, spinning tops, hammers, engulfing candles, pinbars and inside bars.
Crude oil TVC:USOIL fell sharply from 75 levels to make a low around 67.
However, this low is higher than the previous one so the rally may not be over yet.
I can see that the price has bounced back after retracing around 61.8% of the previous upmove, forming a Bullish Engulfing candle.
So we might be in for another cycle of an uptrend in Crude.
As long as ...
After the seemingly never ending uptrend, looks like HDFC Bank NSE:HDFCBANK is facing resistance around 2220 levels.
I can see that the stock got rejected at the trendline and also formed an Inverted hammer with Bearish Divergence.
It may come down to 2000-2100 levels.
Good opportunity to short here with a small stop loss.
Disclaimer: Views expressed here are ...
Price is forming down sloping channel and it has already retested the upper channel so there is a good structure for shorting the stock. One can short at current level with SL of 546 for the target of 495.
Disclaimer : All ideas are my personnel view. Please take financial consultancy for trading decision.
the stock had not performed yet , and is one of the most badly beaten stocks in the IT sector thus , now to maintain the index the stock need to perform and current structure as far as its above 650 looks very well!
Stock has formed bullish Wolfe wave that offers a good trade with small risk and if works and achieve the target it has potential of 4 times the risk being taken. Details are as under
Entry 53.6
SL 52.2
Target 57.6
RR 4
Disclaimer : All ideas are my personnel view. Please take financial consultancy for trading decision.
Good time to go long for a positional trade. SL below 325 on closing basis. Then just wait for a surge up. Targets could be 341/351/365/370 etc (futures prices July contract).
- Yes has been taking support at the 100 MA for the past 4-5 weeks.
- Stochastics look good.
- MACD (daily chart) showing signs of a bullish crossover
- Inverted Head & Shoulder formation ...
After a huge upmove from 232 to 289 levels, SBI NSE:SBIN entered into a consolidation zone for a month.
However, I can see that it has bounced back strongly after retracing 61.8% of the previous rally and has formed a Bullish Engulfing candle.
Looks like it is all set to begin next phase of rally after retracement.
Good opportunity to go long here with a stop ...
Maruti seems like good long positional trade. I am long in futures market since 8900.In my previous chart I had explaind that I was waiting for a bounce from about 8873. On 3rd July I entered long.
Immediate Target ~9600. SL below 9000. Maruti put OI has max addition at 9000 strike and call OI has max addition between 9400-9700 strike. These could form the basis ...
We can observe that the lower low made is not supported by the indicators thus forming the divergence and showing the strength. It is formed Morning Star Candlestick reversal pattern which is reasonably reliable so one can buy the stock at current level by providing the appropriate SL. We can expect the target of 1815 which offers a good Risk to Reward trade. ...
I know this looks like quite a mad decision but I have gone long on ICICI Bank since yesterday @ 272 (futures price).
- It has retraced to almost 78.6% of the rise from 3rd April to 15th May A very deep retracement
- Immediate target = 288 (futures price July Contract)
- SL = below 268 (futures price July Contract)
Reasons for shorting:
- HCLTECH has retraced 0.618% of the drop from 23rd April to 5th June
- There seems to be a Pin Bar/Doji forming on the daily chart
- Daily chart Money Flow Index is very high near 80 level
- Stochastics high on daily chart & falling on 30 min chart
This is a rather high risk trade given the rise in Nifty but I am taking it.
After a good recovery from the lows of 822 to 900, seems like the downtrend in Escorts NSE:ESCORTS may not be over yet.
The Auto index NSE:CNXAUTO appeared extremely Bearish today forming an Evening Star pattern.
I can see that Escorts has formed an Evening Star like pattern as well and has reversed in the 50%-61.8% retracement zone of the previous ...
THE INDEX HAS ENGULFED ABOVE THE CLOSE OF THE
PREVIOUS BAR.
STOCKS LIKE BOI AND BANKINDIA AND CANARA BANK
HAVE ALSO SEEN BULLISH ENGULFING PATTERN
BUY ANY OF THE ABOVE STOCKS WITH A SHORT TERM VIEW
Bearish Abandoned Baby pattern after the uptrend is indicating the potential reversal at this level. The pattern is quite reliable and candlesticks offer good early entry with affordable SL so my mates can use it for their trading. RSI is also coming out of overbought region confirming the weakness.
Disclaimer : All ideas are my personnel view. Please take ...
