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Candlestick Analysis

CONCOR: Price Action for DiwaliFollowing a substantial downtrend in CONCOR has recently exhibited a bullish reversal pattern characterized by three consecutive green candlesticks ( Three Green Soldiers ) on the daily timeframe. This formation suggests a significant shift in stock movement, indicating that buyers have gained control and are exerting upward pressure on the stock. Such a pattern is typically interpreted as a strong signal that the preceding downtrend may be reversing into an uptrend. In conjunction with the daily analysis, the weekly chart reveals that CONCOR has retraced from the 38.2% Fibonacci level. Based on historical performance, this retracement level is often recognized as a key area of support and is frequently associated with strong potential reversal points. The confluence of the candlestick pattern and the Fibonacci retracement level strengthens the case for a bullish outlook on the stock. Considering the current market conditions and technical indicators, CONCOR appears to present a favourable opportunity for accumulation at the current market price . For those considering an entry point, a prudent stop-loss level has been identified at 711 , which allows for an optimal risk-reward scenario. The target price will be 1153 , reflecting a potential long term resistance. Disclaimer: The information contained in this report is intended solely for informational and educational purposes, and should not be interpreted as financial advice. It is imperative that investors conduct their own thorough research and consider their individual financial situations before making any investment decisions.
NSE:CONCORLong
by NiftyNotion
1
Aether Ind forming H&S on weekly charts.A perfect Head and shoulder pattern formation in Aether Ind. Aether Industries is engaged in the production of intermediates and specialty chemicals. Products for Pharmaceutical, agro chemical, material sciences, coating, photography, additive and, oil and gas, segments of chemical industry. MCap = 10491 Cr P/E Ratio = 103 The company has grown in sale by 30% since September 2021 while the expenses has gone up by 40% from 101 Cr to 142 Cr. Opertaing profits are down by 1% (Sept 2021) to 28% Technically the stock might take a dip to its listing price of 703. The overall market is too looking bearish for now as nifty has created another LOWER LOW. Aehter can be shorted below 766 levels upto the listing price for a short term bearish move. Pattern formation looks bearish and RSI indicator is showing a divergence. Though, the indicators are lagging but adds on too the price action. Either the stock will revert after testing the Neck line or will consolidate and give Break Out Or Break Down. Entry should be targeted only once the levels is breached on the lower side and close is given on the lower side. Positional or swing short sell trades can be initiated on the break down.
NSE:AETHERShort
by TheMamboMomentum
What is Price Action ? Beginners Guide in Easy Steps Part -2In our previous discussion, we delved into the fundamental techniques of reading a price chart with key price action strategies. This time, we're set to expand our understanding even further. By the end of this article, you'll have a fresh perspective on analyzing charts and interpreting price movements, empowering you with deeper insights and more confident trading decisions. 1. Identify the direction of trend with the help of price action candlesticks a.)Strong Uptrend: Green candlesticks moving upwards continuously. Indicates strong buying pressure with no selling pressure. b.)Uptrend with Deep Retracement: Green candlesticks with some pullbacks. Sellers present, causing temporary price dips. c.)Indecisive Market: Alternating red and green candlesticks. No clear market direction, prices moving up and down without strong conviction. d.)Tight Range Before Breakout: Small red and green candlesticks within a tight range. Usually occurs before a significant breakout. e.)Weak Uptrend with Choppy Price Action: Alternating red and green candlesticks, choppy pattern. Indicates weak buying pressure and strong selling presence. f.)Healthy Uptrend: Green candlesticks with few red ones. Strong buying pressure with minimal selling, indicating a solid upward trend. 2. Importance of Wicks and the closing of candle Wick and a Doji Candle: Indicates early signs of buyers attempting to stop the price decline, If you observe closely there is a wick in previous candle also, on the break of high of the candle price hit trendline resistance and fallen again. Second Wick at the Same Zone: Sellers tried to push the price down again, but buyers stopped it, forming a bullish pin bar. First wick formed a demand zone but the second wick confirmed of buyers activity. After Some Fight, Buyers Win: Buyers managed to push the price up From the range, kicking out the sellers. More Lower Wicks: Indicates both buyers and sellers are active, but buyers are gradually winning, which is bullish. Lower Wick Shows Demand: After a downturn, the lower wick signals demand coming in. Inside Bar with Bigger Upper Wick: Shows bearish bias. The break of the low led to the continuation of the fall. NOTE: Wicks are an early indication of demand or supply presence, but the location of formation will be more important.It would help if you determined whether it's in an uptrend, downtrend, or range. 3. Multiple Candle Rejection A)Exhaustion Gap: At one point, the chart shows a gap up, where the opening price equaled the high of the day. This indicates an exhaustion gap, suggesting potential for a larger correction. Despite this, only a single bar correction occurred initially, showing resilience. B)Brutal Correction: A sharp, one-bar correction is seen, followed by buyers trying to push the prices back up within the same candle. This indicates a strong fight between buyers and sellers. C)Inside Bars and Tight Range: The presence of multiple inside bars with tight ranges and prominent lower wicks signals consolidation and market indecision. This is a period where neither buyers nor sellers dominate, often preceding a significant move. D)Break and Continuation: Eventually, the price breaks and closes above the range of the inside bars. This breakout triggers a continuation of the uptrend, evidenced by the subsequent series of green candles and higher prices. #Understanding Candlestick Wicks: Wicks/Tails: These are crucial as they indicate early signs of demand or supply. In this chart, the lower wicks suggest that buyers are stepping in at lower prices, even during pullbacks, showing underlying strength. 4.Importance of Close Of Candle If you wait for close of the Candle beyond support or resistance zone then it can help you take high-probability entries only and avoid fake breakouts. Fake breakout means when the price breaks the support or resistance area but it failed to sustain beyond that area and quickly comes inside the range. That's all for today's idea I hope you have gained good insights into how to read market direction with the help of candlesticks structure If you read market direction in consideration with the factors explained in Part 1 then the outcomes will be Great. If this idea helped you learn something new hit the boost button and share with your friends, Stay tuned new ideas in this series coming soon. Keep Learning, Happy Trading. NSE:NIFTY
NSE:NIFTYEducation
by SANJAYPATIDAR_
2
PPLPHARMA STRONG BULLISH CANDLEPiramal Pharma Ltd Strong Bulish candle formation after QTR Result of company good QTR result and breakout found on chart good levels for entry after a pullback or INTRADAY continuation trade with strict Stop Loss **Disclaimer:** This information is for educational purposes only and does not constitute financial advice or a recommendation to buy or sell any securities. Always do your own research and consult with a financial advisor before making investment decisions.
NSE:PPLPHARMALong
by rajatbhawra
1
Tirupati Sarjan Ltd#stocks #investing #swing #trading #technical #RSI #candlesticks Key Points: 1. Support at ₹15-16: The stock has shown strong support at this level, as evidenced by multiple bounces. This suggests that buyers are stepping in at this zone, making it a crucial level to watch. 2. RSI Crossover with 14 EMA: The crossover of RSI above the 14-day EMA is a bullish signal, indicating increasing momentum. If the RSI continues to rise, it could suggest further upside potential. 3. Weekly Hammer Pattern: The hammer candlestick pattern on the weekly chart is often a bullish pattern, especially forming at support levels. It signifies that buyers are rejecting lower prices, which could lead to further price appreciation. 4. Resistance at ₹20-21: The resistance zone around ₹20-21 is an important hurdle. If the stock breaks through this resistance with volume, it could signal a breakout and lead to higher levels. 5. Stop-Loss: If the stock breaks below ₹15, it could invalidate the bullish outlook, and further downside may follow. Hence, view will be neglected if price breaks below ₹15. Strategy: • Bullish Bias: As long as the stock holds above ₹15, the technical indicators suggest a bullish view, with potential upside towards the ₹20-21 resistance zone. • Breakout Watch: A close above ₹21 could trigger further bullish momentum, opening the door for higher targets. • Risk Management: Set a stop-loss below ₹15 to protect against potential downside in case the support breaks. NOTE: This is a risky trade/analysis considering it’s a penny stock. Penny stocks can be highly volatile, illiquid, and subject to significant price fluctuations. Do your own due diligence and assess your risk tolerance before investing.
BSE:TIRSARJLong
by karan_bagri