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Falling Wedge

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
NSE:LICHSGFINLong
by Sai_Kumar
7
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.
NSE:INDIACEMLong
by Roswin-Fernandes
6
BTC, touching new ATH soon? Bear market over?Hello traders, this is a detailed analysis of bitcoin. some important levels and patterns that might help you to know where it can go. BTC is very beautifully respecting the levels and hoping it to respect them further. last time bitcoin fell around 53% and the same correction was being done again. history can repeat and maybe it can start it's bull run again. (45K is important level) there could be a high chance that BTC can start the bull run from here (unless there is not some news pressuring it). One can start accumulate some altcoins which are good for long term. don't invest full at one spot. divide your money in 4 parts. you can add 2 part now and rest can add on breakout (45k) or if dip comes. 45k is important level for bitcoin. if it breaks with strong green candle than there are chances it can touch ATH (All Time High). more info and levels mentioned in the chart. don't forget to like and share. it motivates me to post more super setups like this. check my other ideas to get to know about all the successful trades based on price action. Thanks, Aniket. keep learning and keep earning.
by Aniketyourtechnicalanalyser
BIOCON - Trade after Breakout.Dear Traders, As we can see Bio-con was in Channel Pattern and after it now it was consolidating in Triangle pattern. Today it has given Good Breakout with gap. Normally, people wait for gap to fill and after that they take the trade but here, buying is so good that people are buying without Gap Filling. Also, those who has patience and waiting for gap to fill will take trade during Retest. So, This stock is good for 1 to 2 moth holding. CAUTION : Please check Bank nifty and Nifty Charts before Taking any trades. As if they will act bearish our stock may too. Happy Trading Guys. And like if you like the Content.
NSE:BIOCONLong
by HanumanBhkt
JSW STELL BREAKOUT and H&S PATTERNHello guys hope you are doing good today, in yesterdays post I asked you guys to short TECHM and it ave a good profit in nitraday as it fell more than 40 points and target 2 was hit. Same case with WIPRO, all I.T stocks looking weak. Now speaking of this script that is jswsteel I see that there has been a breakout with good volumes, this once tries to give a breakout few days ago but failed. Now it has given a breakout above the counter trendline with good volumes An inverted head and shoulders pattern is also seen here. Buy above - 689 Targets mentioned in the chart above. Please LIKE, COMMENT and SHARE to motivate and support me. I'll keep on posting new ideas on Indices & Stocks. Be sure to follow so that you don't miss any good trades that might have been rewarding. Any comments and critiques will be appreciated even if it's of opposite view as a trader can also be right so many times.
NSE:JSWSTEELLong
by this_is_shoaib