It has been observed that the price action trending in a down rally but now indicating a reversal due to Bullish RSI divergence, where RSI forming higher high and price action forming lower lows. Now, it shall further move up to the bigger downward trendline at around 640 levels.
Nifty has been galloping at a fast pace over the past few days . The steady support offered by the lower channle of the Pitchfork does augur well for the broader idex as a whole. However we note that the rise has now tread into 1.618 of the recent pullback and hence some profit booking may emerge. The best approach hence would be to book some profits if the Nifty...
Next 3/4 days are crucial for Reliance to decide on next level whether it will come down or move above current trend line.
Currently RSI is t 70 which had resistance in past, hence if it sustains above 900 script will continue its form.
However if RSI resisted then stock will come back to 825/830 level before retrying.
Any thoughts people?
BHEL is currently at 136 levels in downtrend...
Trend reversals signals :
Postitive RSI Divergance, Bullish Hammer and Bullish Engulfing Candlestick Pattern indicates that strong uptrend trend will start..
Targets are 140/147/155/168+
Risk Reward is favourable..
Note: Do your own study before making any positions...
RSI Divergence in double top area is showing the potential weakness. The pseudo upthrust bar yesterday with big volume is another confirmation for the potential short today with Stop Loss just the high of the previous day bar.
well with lower lows on RSI dabur can be bought with a stoploss of 269 CB.
Though I am long in June Futures @ 276 (I know bought it a bit too early) but if tomorrow we get a positive closing Dabur can be bought. Since 15th May there has been an Addition of over 5% in futures everyday except for today it was only 2%.
So I think yea small risk big rewards 280-285.
The price movement are being captured beautifully by Bollinger Band and one can observe that whenever it has traded out of the band, it has given a nice opportunity to trade the reversal. We can apply the same method and short the stock by providing appropriate stop loss and look for the target of middle/lower band.
Recommendation--> Buy: 1490 - Sell: 1535, 1560, 1600 - StopLoss: 1470
RSI is near 50 which will cross the 60,70 and 80 levels in 3,7 and 10 trading days
Trading sideways in the range of 4.25% (1411 - 1470 - 1530) for 3 months.
On Balance Volume constantly increasing which means accumulation is happening before next breakout.
Will buy-on-dips strategy work this time?
This is the best setups for bulls - buying on dips and a jhat-pat trade. The resistance turns support at 8,970 (pink line) will be crucial for bears to break. The recent rally in the range of 9,000-9,200 seems to be disheartened for bulls. The rangebound session with index being firm above 9K express positive yearly...