After lock down opened in China, the sales in Auto Sector increased a lot. Maybe same can happen in India.
ASHOKLEY 1h chart study - Triangle bottom
Head and shoulder formation for Nifty auto
CNX Auto has broken out of long term trendline support followed by lower top lower bottom structure. However, daily and weekly RSI is showing 1-2-3 type positive divergence which means short trap can come into play in short term which may take it to 8200-8400 on the higher side. 7640 is the support on lower side. Overall, it is poised for 6700-6800 till the time...
Stock seems to be breaking a long term trend line as drawn in the above chart which suggests more selling could come. But its also seems to be taking support at 784 levels so either wait for a retest of the above broken trend line to sell or a breakdown below 780 levels. Any breakdown below 780 levels with a strong close below that level may signal correction upto...
Auto Stocks may be at a crucial level. Index has been creating a falling wedge pattern closely following the mentioned trend line. A weekly close below the red line may be bearish and targets upto 9920 levels. Similarly weekly closing above the falling trend line may signal uptrend till previous highs. Lot depends on news flow and earnings so lets see...
Nifty Auto index looks strong as long as it trades above the support. After breaking the resistance CNXAUTO is currently re-testing it.