although its a gap there which need to fill but i see it shall take some time , and even if it fill it will not go one way down (leat possiible) thus will be happy to go long on dip for temporary 5% gain
The stock is likely to emulate the rally that happened by taking support ₹565 post confirming a run-away gap in early April. After forming a fresh gap-up last week, the stock holds on to it and the scrip is in a position to establish another leg of uptrend and form fresh all-time highs.
There are significant number of stocks which have moved up in hurry creating gaps on their way up...
These gaps are real concern and can act as one area where these stocks can fall to. Also such gap is there in nifty
Do not buy into this rally.. it looks like a bull trap which is very common in all bear market corrections.
If technical analysis works, I can not think of a stronger sign for a big down move very soon..
1. Price corrected till golden fib 61.8% level and came down sharp in daily chart
2. It also coincides with the 200 EMA in daily chart.
3. Upward rally is not...
On 20 May we had recommended this idea as cash buy for a target of 97.5 & above 98 for extended target of 102 / 104.
- first we observed Vedanta trading in upward channel highlighted by the blue lines
- we got further cues from trading pattern observed at the green gap zone
Moving between two trend lines, with Gap creation and Gap filling.
Bullish candle with volume was already created, after which a gap up opening was there and the gap is filled.
Upper gap filling is pending and so probably will go for that.