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AUBank Technical Signals Pointing to a 12% UpsideThe recent movements in AUBank's stock chart warrant a closer examination. Following a pronounced downtrend that commenced on January 13, the stock faced considerable challenges in regaining momentum, struggling for a sustained period to close above all relevant daily EMAs). This persistence in bearish sentiment had created a cautious approach among investors, further complicating the stock's recovery efforts. However, the turning point came on Friday, August 30, when AUBank's shares finally managed to close above all daily moving averages, signaling a potential shift in market sentiment. This breakout was accompanied by a notable trading volume of 24M, suggesting that the upward movement was underpinned by strong investor interest. Furthermore, this price action filled a previous gap on the chart, which often serves as an important technical indicator of a new bullish phase. Additionally, a downward trendline breakout was also observed during this period, reinforcing the notion that the bears may be losing control. On the weekly chart, RSI has crossed above the 63 mark, indicating growing strength in the buying pressure. This upward movement in RSI contributes to the bullish narrative, suggesting that the stock may continue its ascent if this momentum is sustained. In terms of price levels, I anticipate a potential retracement towards the 711 level, where the stock may offer a buying opportunity before it aims for the next resistance target at approximately 813 (12% Return). This anticipated movement aligns with a risk-to-reward ratio of 1:2, highlighting a well-structured approach for traders looking to capitalize on this setup, with support firmly positioned at 678 to manage downside risk. Disclaimer: The information provided in this stock analysis is for informational and educational purposes only and does not constitute financial advice. Always consult with a qualified financial advisor and conduct your own research before making any investment decisions.
NSE:AUBANKLong
by NiftyNotions
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
Devyani International Potential Bullish MomentumFollowing a notable consolidation phase that commenced in January 2024, Devyani International has exhibited promising technical signals, suggesting a potential shift towards a bullish trend. Last week, the stock successfully breached the pivotal resistance level of 185 on the weekly timeframe, which is a critical psychological and technical milestone. The 20 EMA has crossed above the 50 EMA on the weekly chart, a classic indicator of bullish momentum known as a "Golden Cross." This crossover typically signals a potential uptrend and aligns with the stock's recent move above the 185 pivot point. Both the daily and weekly RSI readings have indicated bullish momentum, suggesting the stock has been gaining strength relative to its price action over the observed periods. The MACD indicator on both daily and weekly charts is also reflecting bullish dynamics, with the MACD line crossing above the signal line. The stock has managed to close above the equilibrium level, a point where buying and selling pressures are balanced, on both the daily and weekly charts. A sustained close above this level could signify strong sentiment among investors, further corroborating the potential for upward momentum. A Change of Character has been observed on the weekly chart, indicating a shift from prior selling exhaustion to potential buying interest. This technical pattern often precedes substantial price movements, and in this case, it may suggest that sellers are losing control, paving the way for bulls to take the lead. Given the aforementioned technical indicators and patterns, the next resistance level is identified at approximately 236. Should the stock continue its bullish trajectory, this represents a potential upside of around 25% in the short term. Traders should closely monitor volume trends and broader market sentiment to fortify their positions. 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:DEVYANILong
by NiftyNotions
Finolex Cab - Strong up move momentumKey Points: - On daily and weekly chart strong bullish momentum seen with breaking ATH price & potential to have up move for short term - Cup and Handle chart pattern - RSI @ 81 with breakout & crossed RSI MA of 65 - Volume above VMA - Price crossed above 20,50,200 EMA In Gujarati “ Bhav is Bhagwan ” Disclaimer : I am not a SEBI registered Analyst. Please do your own Analysis before taking any trade/investment. The above view is just for educational purpose only.
NSE:FINCABLESLong
by Alpha9982
Overbought and Oversold RSI - The Myth !Generally, When RSI shows values higher than 70 or below 30, this is to considered as stock or index is overbought or oversold. But that's not always the case. As we just learned In The Introduction : Relative Strength Index (RSI) that a high RSI means that there were more bullish candles then bearish candles. As stock or index can't go up or down in straight line there will be some pullbacks. IF RSI gets Overbought or Oversold and we get a minor pullback in prices then it must not be considered as a reversal in direction. It Can be dangerous to believe that just because the RSI shows overbought or oversold condition then its time to sell or buy. Once we understand What RSI really does, Overbought and oversold conditions must not be a signal of reversal for us which indicate that price will change its direction. It's a myth and we may miss out on a lot of bigger moves on those momentum stocks. Following example is a perfect case of Overbought And Oversold RSI And still price continued its Main Direction on Weekly, Daily and on 15 Minutes Charts as well. Example 1) When Price was at 500 levels RSI did show overbought Conditions and From that, it remained in overbought zone for a long time and price rallied almost 5 times to 2500 levels. Example 2) RSI was Oversold When Price was around 880 and Since then it made a low of 670 Almost 25% fall remaining in Oversold Conditions. ( Daily Chart ) Example 3) Nifty on 15 Minutes Chart Since when RSI Went below 30, Oversold condition and Nifty gave up another 300 points from there. Example 4) Banknifty Rallied almost 700 Points Since RSI showed Overbought Condition. ( 15 Minutes ) The RSI done not provide signals to buy when it is overbought or oversold. It simply means that the prices are very strong or very weak. I know that most of experience traders are here who already knows this things. Thank you, EEz
NSE:VENKEYSEducation
by Equity-Earningz
3
HDFC triangle breakout pullbackThe stock has broken out of an upward sloping triangle with good volumes. The shooting star at trendline and bollinger band resistance is followed by a red candle will lead to a pullback to the breakout resistance (now support) giving us an opportunity to buy. The RSI's overbought signal indicates the same. A very great stock, also considering the pressure on PSU banks, private banks like HDFC would do well. Medium and long term trend is up. (50,100,200 MA's) Target, let your profits run until you get a clear reversal signal.
HLong
by HarshShivlani
2