Falling Wedge
WIPRO | FALLING WEDGE🔴 Falling wedge pattern is being formed.
🔴When diagonal support and straight line support meets it will become a stronger one.
🔴Price will try to go up from the current support.
🔴If it fails to hold it may go sideways for re-accumulation phase
🔴 DISCLAIMER : This is just for educational purpose. Do your own analysis.🔴
Falling Broadening Wedge Pattern In NIFTYOn Daily Timeframe, NIFTY trading in falling broadening wedge pattern. Currently it's trading in downtrend direction and this downside can expected upto near 15000 level or downside support level. At this location investor or short term trader can look for buying side positions on reversal confirmation. For long side investors can wait either bottom support level or breakout of upside resistance level.
Disclaimer: Consider this post as an education purpose only. All mentioned levels and assumptions based on historical movements. Before taking any position don't forget to consult with your financial advisor.
Price action screaming buy!! Or is it as simple as it looks?If we go by the textbook definition of a falling wedge pattern, the price consolidates between two downward sloping & converging lines forming a wedge shape. (Not as difficult as it sounds, just looks at the chart).
As per a common understanding of this pattern, the price continues higher after a breakout to the upside.
Price action in LIC Housing finance shows a nice breakout of the falling wedge pattern.
The price broke out with a strong candle and above-average volumes.
This is a perfect condition for a buy trade.
But wait, This is not the complete technical picture. Keep reading
We recently saw how a bullish Inverse head & shoulder pattern failed in HDFC, even though it had a perfect breakout condition, Positive news about the merger and almost all ideas on trading view were out rightly bullish. (Check HDFC idea in my profile, neutral and saved myself from loss)
If it were as simple as identifying a pattern and taking a trade, everyone would be making profits in the market.
Back to LIC Housing Finance:
Along with the falling wedge, there are other technical factors.
Two important levels to watch are the 200 days moving average, and the Horizontal S&R line at 389.25.
The price has taken support or resistance at this line multiple times in the past.
Let’s look at the positives first:
• Perfect falling wedge pattern & breakout with a strong candle and good volumes.
• MACD trending higher and in positive territory. RSI Strong, and other indicators in the positive territory.
• Price finished its correction exactly at 61.8% Fibonacci ratio with Price RSI positive divergence before the correction ended.
Now the Caution Signals:
• Price trading below Strong resistance line at 389.25 and struggling to cross above.
• Price below 200 days moving average (a strong resistance level). 200DMA currently trading at @400.
• Whole numbers are considered psychological S&R levels and 400 is a psychological level.
• Fibonacci 38.20% level @ 405.60 may act as minor resistance.
Combining these points, we get a strong resistance zone between 389 to 400 and minor resistance at 405.
A breakout above the wedge pattern is the first signal. The price has to breakout above the resistance zone.
If the breakout happens, wait for the price to retest 200dma or Horizontal line @ 389, whichever is higher at the time.
I give more weightage to Horizontal S&R lines because these are the points where most buyers/sellers are concentrated.
200DMA is definitely a strong resistance and there will be many sellers at this level.
I’m cautiously bullish on this stock.
The best way to avoid failure is to wait for the price to give us a confirmation.
I will be following the price movement closely and update this idea when I get a buy/sell signal. So follow me and stay tuned for the next update.
Post your comments. Let’s have a discussion.
Happy trading.
Co-Authors:
in.tradingview.com
in.tradingview.com
Disclaimer:
This is not buy/sell advice. Please do your due diligence before making any trading decision or consult your financial advisor.
Sharing my analysis and thoughts for a stronger and healthier community. Cheers
#StockMarket #StockIdeas #StocktoWatch #StockToBuy #positionalBANK OF INDIA
On weekly time frame, falling Wedge chart formation
& Now trading at wedge upper channel
Risky Buy Call
To buy above 54-55 levels
for short term targets of 5-10%
Keep 3-4% tight SL on closing basis & also Trail SL to maximize Profit.
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Note:
Above levels are for education purposes only
Do your own analysis before taking any trade
Please Like & Follow
INDIACEM--> FALLING WEDGE BREAKOUT + BOX CONSOLIDATION BREAKOUTNSE:INDIACEM
TECHNICAL ANALYSIS
--> INDIACEM is on the uptrend on a bigger timeframe forming Higher Lows .
--> INDIACEM has given a breakout of the FALLING WEDGE pattern previously.
--> Now INDIACEM is on the verge of breaking out of the BOX CONSOLIDATION pattern.
--> INDIACEM has given consecutive closing above the POC (Point of Control-Volume Profile) and cluster of 9EMA, 21EMA& 50 EMA .
--> Stock has tested the top of the BOX RESISTANCE multiple times ,so next time there is a hIgh probablity of breakout.
ENTRY
--> Take a postion when stock gives 1 HR closing above 218.50 .
STOPLOSS
--> SL can be placed below the Breakout Candle at 208 .
TARGET
--> Target 1 will be around 229 which is a weekly Resistance.
--> Target 2 will be around 249 which is the next Resistance near ATH.
WaveTalks: Bank Nifty - Possible Ending Diagonal Setup at 35200Ending Diagonal Setup can complete in 35150-35250 zone.
Trading Strategy : Buy
Buy in 35180-35225 zone if Index halts & takes support
Stop Loss
Below 35150
Target
35700
35950
36275
Note - Ending Diagonal Setup gets invalidated below 35150 levels & structure has to be reviewed later.
Thanks for reading & Have a nice weekend.
#StockMarket #StockIdeas #StocktoWatch #StockToBuy #positionalMGL
Stock after correction making Falling wedge pattern & now in Darwas box trapped
Buy above levels 797/800 DCB
With SL of 755 for positional targets of 835/850 levels
In short term view
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Note:
Above levels are for education purposes only
Do your own analysis before taking any trade
Falling wedge plus possible double bottom pattern Falling wedge channel and possible double bottom can go long on HDFC very beaten stock