Eicher motors on the daily time frame has been trading in a narrow range of 50-60 points which is unusual of this kind of stock.
The stock on the weekly time frame has tested its 20 ema and formed a hammer doji.
The stock has been falling for 2-3 weeks and can give some retracement before continuing another leg.
3 point confirmation.
1. Taking support from 20...
1) On 1 week time frame, it has come above the resistance channel and closed above it.
Please refer below chart : 1 week time frame.
Now make or break range is 2780-2800 range.
Sustainable breakout of this range will give good up move an if it fail to do it then it can come down to retest again this resistance channel.
1) On 1 day time frame, it is below 200DMA and it gave good up move from 50DMA.
200DMA is immediate resistance and 50DMA is immediate support.
500DMA @ 2542.36 and 200DMA @ 2620.84
Please refer below chart : 1 day Time Frame.
2) Also On 1 day time frame, we can see formed perfect double bottom pattern and we can also see now...
Eicher Motos is near its previous high and about to give breakout from the pattern, Once can go long if it sustains above the upper yellow line on 15 mins time-frame for marked targets on the chart.
To motivate me, Please like the idea If you agree with the analysis.
InvestPro India Team
NIFTY 50 EOD ANALYSIS -05-08-21
Open / High / Low / Close
16288.95 / 16349.45 / 16210.3 / 16294.6
Trading Range Low to High: 139 points
Likely Max Realistic Opportunity @ 50%: 69.5 points
India VIX: 12.87 / --2.57%
FII DII activities: +12 Crores
CHART BASED CONCLUSIONS
Nifty made yet another gap-up opening and yet another ATH close.