The following all the sign of down break out but the price is still in the channel.
Gap has been seen in the value area.
The price spike also still in the channel.
Volume raised with price fall.
The Gap has been seen, and spike with raised volume which very important for a trader. If this is down breaking out, the price can still 100 points to 148...
Indigo is taking support at its swing low. The trend is upward. Though RSI is showing Class B Bearish divergence, I have a long bias as the trend is up and because of the Indian Election favourable exit poll.
Indigo seems to have entered a distribution phase. It enjoyed a stupendous rally on the back of Jetairways going kaput. The Rsi has given confirmation on the weekly charts and it would be wise to book profits on longs. With crude rising the party in Indigo might come to a temporary pause.It might touch levels of 1400 -1332 in the short run. The Fibonacci...
Buy Indigo on dips for 12th Feb with a SL of 1162 and target of 1207. Do not take a trade if it opens above 1199.
Adjust trading volumes as per entry price.
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