The stock has bounced off monthly support. Have a look at the 15-minute chart here. A breakout past the cloud would be a bullish sign and would strengthen the case for a rally to 700+
Support comes in at 650
Price has reached an important support level in the monthly chart. Am watching if this level would arrest the recent fall. I would ideally prefer a "Hammer" kind of a candle this month and a breakout above upper magenta line. A combination of these two would give me the confidence to buy this stock.
Until then, it makes sense to watch this one :)
Sun Pharma touching its long term support and forming a falling wedge, there may be a good buying opportunity at around 710.00, after touching 710.00 may change trend in upward direction. Risky Trader may go long in sun pharma at CMP, conservative or investors enter above 750.00.
It is been observed that the price action breaks out from a descending triangle on hourly chart, indicating further bullishness and positiveness ahead. It is been consolidating for a while and this break out shall boost the movement towards the next resistance level at around 780 levels. Consider it a good buying opportunity.
Target: 782
Stoploss:745
Watch the rally or the sharp spike up and the relaxed and slow drift lower to support. The fall indicates there is little selling pressure. Notice the bounce off support via a nice Hammer candle and higher volume.
As long as the recent low 730 is not breached, I expect a rally past 772.
It is been observed that price action failing to breach 770 levels due to selling pressure on higher prices that limiting the price action to 770 levels where it formed a double top (V-shape). Now it is a good time to short it with stoploss at 770 levels.
Target: 745
Stoploss: 770
Risk Reward: 1:5
Sun Pharma Chart is a nice case-study for students of technical Analysis. Irrespective of what your area of expertise is, there is something for everyone. Harmonics, Point & Figure, Wyckoff, trend channel and Andrews Pitchfork to name a few. I expect price to test the red-colored middle sliding parallel at 890-900 band.
