WCIL: Bullish Momentum After Demand Zone ReboundFollowing a rebound from a key demand zone in April, the price action of WCIL has entered a bullish trend, which is visually supported by an upward-sloping trendline on the chart. This trendline reflects a series of higher lows and higher highs, indicating sustained buying interest and positive momentum.
Between June and mid-August, the stock entered a consolidation phase, moving sideways within a defined range. Despite the pause in upward movement, the price continued to form higher lows and higher highs, which can be interpreted as a sign of accumulation rather than distribution.
Last week, the stock retraced to a previous higher high zone and managed to rebound once again, reinforcing the continuation of the bullish structure. This behaviour suggests that buyers are defending key levels and maintaining control of the trend.
From a momentum standpoint, the RSI on the daily chart is currently at 70, indicating that the stock is in the overbought zone. However, RSI readings in this range during strong uptrends can also suggest continued strength, especially if supported by volume.
Speaking of volume, there has been a noticeable increase in trading activity during the recent uptrend, which adds further confirmation to the bullish sentiment observed on the chart.
Based on this technical structure, the next potential long-term resistance level is identified near ₹171 , while a technical stop-loss level could be considered at a daily close below ₹103 , which aligns with a key support zone and trendline structure.
Disclaimer: This analysis is intended solely for educational and informational purposes. It does not constitute investment advice or a recommendation to buy, sell, or hold any financial instrument. Market conditions are dynamic, and trading decisions should be made based on individual research, risk tolerance, and consultation with a licensed financial advisor.
Overbought-condition
Oscillate The Right Way: RevisitedFor all the basic stuff that I am using in this post, you will have to visit the following idea. This post is in continuation of SBI weekly divergence study..
Abbv. used:
Overbought -- OB
Oversold -- OS
Divergence -- Div
A-- OB
B-- Div after OB at A
C-- Double top and Div
Multi week correction back to support
D-- OS at support and very sharp rally due to news
E-- OB in the same news candle
Multiweek correction back to support
F-- OS and Div at support
Multiweek rally to previous highs
G-- OB
H-- Div
Price still rallied and made new highs
Later a very sharp fall back to support
I-- OS
J-- Div at support
Price rallied sharply to the high of point E
K-- OB
L-- Div
At L we have similar condition as we had at E. These conditions may pull the price back to the high of E at around 350 to find some support.
Some observations:
# Div not always lead to an immediate fall. Once it is OB/OS conditions, one may have to look for div trades on lower timeframes like daily.
# One should not force trades and let the price take its course of action and reveal hands (eg at H)
# Price action at lower timeframes should be given equal importance.
# Div after OB/OS conditions works great.
# Sharp rallies which take old highs in just one or two weeks plus OB conditions means caution. Same is true for sharp falls.
# Div trades look very simple in the hindsight but as per my experience they are not that easy to trade in the live market.
I hope this will add to your knowledge.
Regards
JJSingh
Amber enterprises showing false breakout?Amber enterprises showed a breakout yesterday and many buyers entered here because of the breakout
But do you know it's a false breakout?
lines reference:
dark blue-resistances
cyan blue-supports
yellow-both acting as support and resistance.
Guys please first like and comment :)
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Ok...Now I was telling that amber enterprises has shown a false breakout because:
1) the stock form Abandoned Baby bearish candlestick pattern which forms only on a false breakout and doesn't form on a true breakout.
2) the stock came in overbought zone.
3) Although the stock breaked all the resistances but the resistances are so strong that they are pulling the stock to the consolidation channel.
4) The stock also made a new resistance here after this false breakout.
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Alert for you guys :)
please do like and comment as I give you profitable Ideas :)