Price action lovers must be watching it like a hawk but we have lot of things to understand. Let's try to understand few...
1. Price action is showing that it has stopped making new lows.
2. Made a W Pattern already(We just need to wait for the neck line break).
3. Taking support at 200 EMA with gap also acting as support.
4. Volumes ? dont forget to look at the...
Earnings play: Max 3 day trade
+1-2500 PE- 8
+1-22650 PE- 20.5
+1-2850 CE- 25
+1-3000 CE- 8.94
-2-2600 PE - 20.5
-2-2900 CE - 18.95
Net Credit - +10305
Cap Req - 2.9L approx
BE - 2529-2971
Max Profit - 35305
Max Loss - 14695
POP - 88%
The stock has already taken its support, and now trading near the support there is a price rotation, sellers and buyers both are active this the stock is not able to decide its route.
thus if the stock cross 211.46 it can move up-to 215.70 and still further up move.
Strong support level 206.65, if the price cross this level the stock will be bearish.
Bajaj Finance has already formed a descending triangle.
It has break its triangle in up-direction and now this stock is following an up-direction.
You can see in the chart i have mentioned "continues up-move"
after every continues up move the stock always form a small triangle and there is a price rotation.
The stock has taken perfectly it's support every-time.
GAIL is at a strong support right now. It has tried to break this support multiple times but has failed. If it does break from here, it could melt down to 69 levels.
If it reverts back, this could be a good entry point as the support will act in again.
Price took the support and reached the resistance as expected and rejected once again from the same levels ( 175 ) and reached 166, which is the previous support level. Risk takers can go for buy here with small stop.
Bharti airtel will attempt to take a strong support around 414-415 levels.
If the resistance is broken, then the down side could be huge and profitable.
Sell below 414. Target at 388. Stop loss at 427.
Major Support Level Break Down
RSI was not above to cross above 60 Level
Closing RSI Below 40 can increase the downside momentum
Rising ADX Crossing above 20 and -DMI took support at 20 indicates that trend may take strength now
Price Action = Formed Lower Swing High and Lower Swing Low
Most Recent Swing high is very near to the Major Support Level