CEAT just broke out from the neckline of a not_perfect head and shoulder pattern. Yet the neckline resistance was respected all along.
Its retesting the neckline zone. If the resistance of neckline has turned into support, a possible breakout from the triangle /trendline can be expected.
Small yellow sup/res levels can still cause the reversal or sideways...
CEAT is currently at a crucial stage where its facing a resistance from an old trendline and support by a channel
Please take your decisions based on the direction of breakout (at your own risk) :P
Here is the bigger picture on daily chart:
Long Lower Shadow candlestick pattern and OI analysis also positive sign for Long.
Price - UP
Volume - UP ( +17 lks volume high compared with previous day traded volume)
OI - UP (+30 %)
Market - ** will update on trade day**
Buy abv - 1147
Target - 1167
Stop Loss - 1130
Reward Points - 20
Risk Points - 17
Price - UP
Volume - UP ( last 2 hrs )
OI - UP (+17%)
Market - (let see on 23/12/2016 - if nifty positive then will hit the targets)
Conclusion - Bullish
Strong Support - 1111 ( 3 rd times bounce from this support level )
MACD - Bullish crossover on bearish trend (below 0 level) but histogram likely to move above 0 level, its signal...
CEAT Ltd. has been trading in down trend and in a channel, it seem to trade in further down trend with a target of 1160 first and if broken 1072 next target the crucial 50% fibo level.Traders may enter short in CEAT with target 1160 in near term.
Ceat Ltd. is trading in bearish trend and seem to touch its long term support 1181.80 and may go upward if breakout didn't occur, else it may further retrace up to its next support somewhere between 1100-1095. trader may wait and cautious at 1181.85 and enter according to the trend. if breakout prevails then go short or if reverses then go long.
Ichimoku best works with clear chart patterns and trending stocks. On Daily charts, we have witnessed a Kumo break out, which indicates we can initiate a trade and go long on CEAT. I had marked the resistance areas 950, 1030, 1125 & 1300 where we can see some corrections.
PRO's please guide with your comments.