ITC after long support of 20DMA now closed a candle below 20DMA in the 1-day chart. On the lower side, we can see a trendline breakdown too and 50 DMA is our next TARGET.
Also, 10DMA crossed the 20DMA in the 1-day chart now we can trade for short up to lower support line.
The evening star candle was formed, showing a downtrend later on a Doji and a gap down...
ITC is ready to take the holy dip below its March 2020 low of 134.60, this will be last fall of the decade for the FMCG / Tobacco giant resuming its major bullish journey
NOTE - consult your financial advisor before making any investment decision on my view
ITC gave a 50% retracement with two inverted hammer with Stochastic NCO
Decent Trade for next 10 days.
SELL 235 CE @ 4.50
BUY 240 CE @ 2.40
Total : 2.10 = Approx. Rs. 6720 /- (2.10 * 3200)
Required Margin in Zerodha : Approx. Rs.50000/-, Final Margin : Rs.35600/-
%Profit = 6720 / 35600 = 18.87%
ITC has been in an uptrend since last year.. It is now confirmed to be trading in a rising wedge formation in medium term and in a descending triangle formation in short term... Both have bearish connotations..
Volume oscillator also has downtrend..
200-205 levels have been extremely strong support in the past..but strong support also means strong resistance......