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RGL Cup and Handle Formation Signals Potential 16% UpsideIn the daily time frame chart of Renaissance Global Ltd (RGL), I have identified a compelling Cup and Handle pattern, which is a bullish continuation formation that suggests potential for upward movement in the stock price. Currently, the stock appears to be in the process of forming the handle, a critical phase where consolidation occurs after the initial cup formation. The handle formation is being supported by the Fibonacci retracement level of 61.8%, which is often viewed as a significant support area following a price correction from a recent HH. This retracement suggests a healthy pullback, providing a solid base for buyers to re-enter and push the stock higher. Over the past few weeks Volume growth during the formation of the handle is a bullish sign, indicating increased interest and participation from traders and investors. MACD on weekly time frame has crossed above the zero line, with the histogram currently reading above 3. This bullish crossover indicates a strengthening momentum, suggesting that the stock may continue its upwards trajectory. Additionally, the RSI for the weekly chart is positioned around 66, inching toward the overbought territory, signaling robust buying pressure, but caution is warranted as the stock approaches these levels. Currently, the stock appears to be in an accumulation zone, with the price fluctuating between 120 and 125. This range may serve as an opportunity for investors to build positions as the underlying fundamentals, supported by technical indicators, with a solid support level is established at 104. The next resistance target is identified at 146 which could result in approximately a 16% return from the current accumulation zone. Disclaimer: The information provided in this stock analysis is for informational and educational purposes only and should not be construed as financial advice. Always seek the advice of a qualified financial advisor or conduct your own research before making any investment decisions.
NSE:RGLLong
by NiftyNotions
Let it Rain!Technical Analysis of Rain : Over the past two years, Rain's price has been in a consolidation phase following a significant 300% increase from April 2020 to July 2021. It's important to note that this price surge occurred alongside a broader market rally during the same period. Positive Indicators : The weekly and monthly charts highlight some encouraging signs. Notably, there has been a sudden increase in trading volume , and the MACD lines and bars have been flatlining on the monthly timeframe, which may indicate a potential shift in momentum. Key Support and Resistance Levels : Support: 140 Resistance: 190, 225, 255 Disclaimer : This analysis is intended for educational purposes and is not a recommendation to buy. It is important to learn how to recognize and understand patterns in stock movements.
NSE:RAINLong
by sandeepbalachandran
Panic market crash may be seen ahead of Ayodhya verdictNifty developed an 'evening star' pattern in daily chart, which is a very strong bearish signal. Ahead of Ayodhya verdict, market is selling off from the strong selling zone near all time high. There is a strong possibility of an extreme volatile market in the coming days due to the high sensitivity of the issue. If price breaks the blue trendline, I am anticipating a downward rally till price reaches the strong buy zone as marked in the chart. Also, a clear bearish divergence in MACD histogram has developed in daily chart of Nifty
NSE:NIFTYShort
by ssen
Nifty: Price Action Macd Strategy: RevisitedFree stuff -- something which we ignore in haste. Unfortunately, whatever education I have been doling out is absolutely free. So please bear with me. Rules: ------- Only Long trades when price > 55 EMA Only short trades when price < 55 EMA ------------------------------------------------------------------------------------------------------------------------------- Time Frame 1H ------------------------------------------------------------------------------------------------------------------------------- Long Entry Preconditions: a) Price above 55 EMA b) MACD histogram above zero line --Positive Divergence seen on MACD signal line (a complementary condition for High probability Entries) Long Entry Trigger: Price break above Significant peak fractal of previous downwave OR the break above prior peak fractal high. Exit Strategy or Stop: Type 1 Exit Precondition: Negative Divergence seen on MACD signal line; and Trigger: Break below a consolidation level or the prior minor swing low Type 2 Exit Hourly close below 55 EMA Exit type I or type II whichever comes earlier ----------------------------------------------------------------------------------------------------------------------------- Short Entry Preconditions: a) Price below 55 EMA b) MACD histogram below zero line --Negative Divergence seen on MACD signal line (a complementary condition for High probability Entries) Short Entry Trigger: Price break below Significant fractal of previous upwave OR the break below prior swing fractal low. Exit Strategy or Stop: Type 1 Exit Precondition: Positive Divergence seen on MACD signal line; and Trigger: Break above a consolidation level or the prior minor swing high Type 2 Exit Hourly close above 55 EMA Exit type I or type II whichever comes earlier ------------------------------------------------------------------------------------------------------------------------------------ # If trade exited but price shoots back piercing out of 55 EMA or is already above/below 55 EMA , a break of previous peak fractal with MACD histogram above/below zero line triggers entry again. # Exit Strategy discussed above works well in long trades but chops in short trades. Tweaking a little by taking 1:1 or smaller targets (to previous support zones) instead of the Exit strategy may help in this issue. Backtesting 10/2017 to 2/2018: -------------------------------------- 9896/10413 = +517 *10331/10255 = +76 *10254/10130 = +124 10344/10355 = +11 *10211/10130 = +81 *10095/10148 = -53 10323/10210 = -113 *10210/10255 = -45 10374/10469 = +95 *10409/10504 = -95 10504/11009 = +505 *10878/10781 = +97 *10511/10411 = +100 *10379/10330 = +49 10475/10478 = +3 Profit points = +1352 What I have noticed is that this strategy works very well in a trending market. It help to ride the trend to this full potential. On short trades, we have to take profits at previous supports or else it will chop the profits. May be this is because we have been in a bull market. I sideways market there are hits and misses. I will try to further fine tune but keep in mind that no strategy works all the time, as visible from backtesting results. Do hit the like button for appreciation. Regards Bravetotrade
NSE:NIFTY
by Bravetotrade
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