Parallel channel with gravitation on the weekly chart-:
If you see the price between line (b) and (c), you will note that price is trading longer time into this area. Presently, the stock price is the (d) or value low which is support....
DRREDDYS openned with Gap up and broken line(b). Selling above line(a) is not bad idea.
CMP 3386 with high
--> 3386 + 182 = 3568 R
Suppose to create tail, then resistance 3455.
Steps to sell=:
We created a parallel channel by looking at market pivots that have lines (a), (b),....(e). If look at this chart and drawing minutely, then you will found that where are maximum points(dots). That is called gravitation to attract the price value. In the future, while the pullback price tries to test this line in the coming days.
Fibonacci ratio, Many traders...
A parallel drawn support and resistance line. Remarkable point: this stock always been seen in a Rhythm. if Rhythm holds the same, then definitely Investors will take a step between 1038-1008. Final support is at 924 if breakdown 1000 below or closed.
The point to be marked: Whenever there is a change in normal / avg. volume, stock takes U-turn which is positive...
Almost many things are till remaining on the chart although i have plotted following:
Major and minor channel
major and minor support level
future expected resistance is at 1661 nearby
In the last update, I expected a responsive move(bounce back after falling from the channel). I have already written about this simple strategy INITIATED move after the breakout channel and Result move (bounce back). The same thing happened here. The price back after Initiated move. I know that Here are many traders who don't about some different strategy, I am...
Testing Channel. Break out from a previous bearish channel is observed entering a new sideways channel. If breaks either support or resistance of the new channel, good movement could be observed.
Break Out Retest in Channel.
Volume At Support.
Other Details Mentioned In Chart.
Positional View For Educational Purpose Only.
Please Consult Your Financial Advisor Before Taking Any Decision.
I am not SEBI Registered Financial Advisor.
Looking at the Gravitating line(Red), you can how there is an active attraction from 1 to 8.
The Price is moving toward the support level(225) on a strong(tight) value area(Channel) where investor's eye is looking to buy this stock. The changing and crossing over the Average Volume should be best sign for creating a position (target 257 and 280).
Price is moving in very wide downward sloping channel. Although price is extremely oversold in weekly chart, but it might test a very old support (marked as Target-2) before turning around. Till then keep shorting with strict stop loss or option hedge.