Trading Idea: Short to Medium term positional
Reason: Good cypher pattern close along with good accumulation happened btw 50 to 60 zone in Federal Bank. It is entering into demand zone .
Chart Pattern: Harmonic pattern
Targets: 80/100 plus
Stop Loss: Daily Closing basis 57
Holding Period: 6 Months
DISCLAIMER: Trading Ideas are shared for learning...
(This is purely for educational purpose, do not take trades bases on this. I am not certified Analyst. Consult your financial Advisor before making any trade related decisions. )
Long trade looking possible from the current chart levels.
Enter Between 50-51
Target 1 - 56
Target 2 - 59
Federal Bank is trading in a downtrend from long but currently, it entered into a triangle formation with a most probable upper side breakout. One can go long in FederalBnk Sep Fut above 52.10 keeping a strict stop loss at 50.30 which is a lower leg of a triangle breakout.
Federal Bank has been in accumulation zone for the last 40+ trading sessions, bouncing around the 50-58 rupees range. We had a good breakout over 60 rupees last week but with the negative news in the market with AGR uncertanity and Loan Moratorium. Bank Nifty stocks have taken quite a beating in the last 3-5 trading session from the recent high.
This is likely to...
Note: This is for educational purpose only.
There is an ascending triangle bullish breakout with high volume. RSI is above 70 which indicates bullish momentum but there is a possibility of consolidation/ side ways movement to RSI to cool off before the next up-move. The breach of previous swing low will act as Stop loss level.
BSE:FEDERALBNK Volumes have spiked to 130M during the Aug 28th Trading session.
Federal Bank showed a breakout with huge volume after weeks of consolidation between the INR50.00 to INR58.00
Expected Federal bank to reach next level of consolidation from the next trading week.
Banknifty saw gains of over 4% during the same trading session.
Federal bank forms ascending triangle pattern in 1day view. BSE:FEDERALBNK
Currently stock is nearing the support line. Can be considered for medium term investment, price has potential to go up around mid of September month if the same pattern follows.
PS: this post is for educational purpose only! Remember stock market is Zero Sum Game! Trade @your own risk!
I hope you can now see how the Federalbnk represents an excellent low risk profit entry setup allowing you to trade in the market.Take positions so that the risk/reward is in your favor.
Knowing why, where & when a strong reversal signal is being generated will be the only way to capitalize on your technical analysis .
Disclaimer: It should not be assumed...