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Support and Resistance

How Support and Resistance of Fibonacci Levels - Pidilite IndJust posted chart for learning purpose, please note the retracements levels bounce from key levels. How stock behaves at key levels marked to form price action on downside when the latest swing was marked using fibonacci retracement After Forming W Pattern at bottom, confirming through RSI Divergence, 1) First Retracement to 38.2% levels, then came down 2) again found resistance at 38.2% levels 3) third time broke 38.2% level as it got weak and got resistance at 61.8% level 4) Retraced to 50% level and bounced back to break 61.8% level (perfect price action) 5) Formed double top pattern at 78.6% 6) stock fall downside back to 38.2% levels and retraced to 50% levels (perfect price action) 7) Again retracing and finding resistance at 38.2% level Happy Learning
NSE:PIDILITINDEducation
by kapilvaidya1
Basic Pattern: explanation of Cup and Handle pattern.How to trade Cup and Handle pattern? The Cup and the handle pattern is basically the retracement from the prior top to about 1/3rd of the vertical height of the cup. Cup and Handle pattern can be seen both as a bullish continuation or reversal pattern. Cup The Cup is usually “U” shaped and may be considered as a rounding bottom with almost equal highs on the both side. Handle The handle is usually the pullback and the pullback is about 1/3rd of the size of prior advance. The smaller the pullback, better is the strength of the formation and higher the possibility of breakout. Volume The breakout from the handle’s resistance should be appear with increased volume therefor conforming the breakout. Target The projected target from the breakout is usually the vertical distance from the high to the bottom of the cup. If you want more education ideas please LIKE, and give SUGGESTIONS in the COMMENT box below.
NSE:NIFTYEducation
by Jay_shree
44
Stuck Between "A Rock & A Hard Place"Bharat Forge is a good example of several stocks in the Nifty 500 right now. The stock is stuck between former support that's been intact for nearly 6 years (355) and former resistance that's been intact for nearly 15 years (200). As a market participant, it's difficult to bet on this type of stock longer-term in either direction as long as prices are between these two levels. As a fresh short or someone liquidating longs, you don't want to be placing orders near 200 because the market's telling you there's still underlying demand there. As a fresh long or someone liquidating shorts, you don't want to be placing orders near 355 because the market's telling you there's still overhead supply there. As a result, you have this range develop that neither longs nor shorts want to bet against breaking. Why would anyone want to be the one to force it in either direction when the market punishes you for doing so? People who are trading the range are being rewarded with gains, while those betting against it continuing are punished with losses. And thus the range continues. And it will continue until a large buyer or seller, an institution, puts enough supply or demand on the market to break the range. Once that happens, the positive feedback loop that's been in place will be broken and a new behavioral trend will manifest itself in the market. So what's the best course of action for someone with a timeframe of several weeks to several months, or longer? Wait. Let the institutions who set the trends show their hands and then we can position ourselves to ride along to profits with them. In the meantime, trade the range if you'd like, but until prices break decisively in either direction and begin trending, there's no reason for us to be betting aggressively. This is how we approach rangebound stocks for our timeframe, which looks out several weeks to months (or longer).
NSE:BHARATFORGEducation
by AllstarchartsINDIA
Nifty closed in the Supply Zone.Which will be the next Zone ? Nifty closed in the supply zone of 9490-9580. On the downside demand zone @ 9230-9250. Today as I have mentioned in the telgram group that I am not expecting nifty closing below 9490. The reason is: 9490-9580 is a supply zone on a daily chart and 9490-9735 is a supply zone on a weekly chart. So 9490 is a very crucial level in a higher time frame. I am expecting a weekly candle close in 9490-9735. If Nifty will manage to sustain above 9500 then it may face 1st resistance @ 9580. Once It will sustain above this level than on the hourly and daily chart next major supply zone @ 9990-10090 but it will face one more resistance @ 9735 range which is an upper level of supply zone on the weekly chart. From the last few days I was in favor of taking a position in option writing instead of FUT because Nifty strength was missing and I was not able to find decent technical stop loss (not logical stop loss). But today I have seen good strength in Nifty so I may trade in FUT instead of Option writing.
NSE:NIFTYEducation
by Swapilchoksi
Bank Nifty: Trading Plan and Demand and Supply Zone. Bank Nifty trading in the trend line channel. On the upper side major supply zone @ 21500-21800 and downside short turm major demand zone @ 19000-19200. Also, there is trendline support near the demand zone. In any case, if Bank Nifty will break and sustain below 19000 then minimum 1000 points downside range will open. The yellow zone is an OTM option selling zone for me. I will avoid taking a trade-in FUT in this yellow zone.
NSE:BANKNIFTYEducation
by Swapilchoksi