Hard trade on AdaniENT- neckline is too broadIs the stock ready to give a solid breakdown again? With such a broad neckline and the inherent volatility of Adani Enterprises post-Hindenburg, traders need to be cautious. This pattern suggests a significant move could be coming, but whether it will break down further or consolidate depends largely on how the market digests both technical levels and any further fundamental developments around the company.
Technicalanalysisexplained
Unveiling the USDJPY Sell through Price Action Analysis All the key points, aspects, and probabilities are clearly mentioned on the Chart. Kindly do your own research before entering.
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BANKNIFTY FUTURE INTRADAY LEVELS FOR TOMORROW 28th MARCH 2023#BankNifty Future Analysis for #Tomorrow 28th March 2023
As per our #analysis for #BankNiftyFuture, we are expecting these below mentioned Intraday levels tomorrow, kindly check the charts on 15 min time frame and act accordingly.
Previous Close: 39486.40
#BankNifty Bulls can get active above 39568 For the #IntradayLevels towards 39658/39755/39841
#BankNifty Bears can get active below 39384 For the #IntradayLevels towards 39265/39171/39079
Disclaimer: All the provided levels are for #educational purpose only, please do your own analysis before doing any trade in the live market or consult your #financial advisor before act.
Follow Us For More #Updates in Future
GRASIM: Evening Star with ResistanceStock has formed a reversal candlestick pattern which is known as Evening Star on weekly time frame. Also there is a horizontal resistance which suggests that the trend developed from the bottom of 1274 is exhausted and stock is ready to turn from the current level.
In the Evening Star Candlestick Pattern, the first candle closes bullish and the second candle closes with a small range and, the third candle closes aggressively lower (more than 50% of the first candle).
Evening Star Explanation:
In the Evening star candlestick pattern, the first candle shows the buyers are dominating as the price closes higher.
On the second candle, there is indecision in the market as both selling and buying pressure are in equilibrium (that's why the range of the candle is small).
On the third candle, the sellers win the battle and, the price closes lower.
Trading Strategy: Keeping SL of 1790 go short on current levels and look for the target of 1590/1550
TATA STEEL: CorrectionAfter a five wave rally stock is correcting in a three wave fashion. The five wave rally can be considered as a wave-1 of higher degree and the subsequent fall should be taken as wave-2. Hence,stock is likely to correct towards 100/97 area which is also a 50%-61.8% fibonacci retracement zone, which suits better retracement for wave-2.
Trading strategy: Sell 103 , SL: 106 tgt: 100/97
What is Technical Analysis..?Technical Analysis is the study of price and trend changes in Commodities, Stocks, Futures and various other market instruments. The price changes are primarily evaluated by
various indicators, oscillators or trading systems to give a trader an edge in trading. Technical analysis is not a perfect science by any means, but it does have certain characteristics,
patterns or indications which may be repetitive or may be intuitive and tend to possess Zen-like predictability power. Technicians plot these prices and price changes on a chart and
apply various indicators and studies to figure out potential supply and demand areas, trade setups, targets and stops to win. Technicians have developed various methods of
representing market data on charts. The most extensively used charts are bar charts, line charts, candlestick charts and point & figure charts. There are many other variations like
Kagi, Renko and Range bar charts.
The most basic charts in technical analysis follow simple Cartesian structure (X&Y axes) to draw in 2-Dimensional space. On the X-axis (Horizontal), the time is plotted and on the Y-
axis (vertical) the corresponding price is plotted. Any indicators derived from the time and price values, are either overlaid on the chart itself or plotted in secondary-graphs below
and above the main price time chart. Some traders plot volume on the X-axis as a representation of market activity. Charts are plotted using various scales such as arithmetic or log
charts. Arithmetic charts have the same distance between the prices where as log or semi log charts have a variable distance to represent the proportionate price movements.
There are many facets in technical or chart analysis to understand and master. Price, Volume, and Time are the three most basic components of the market. Many successful traders
only study price action to make money . Many other traders use complex mathematical theories and faster computer technologies to analyze and participate in the market action.
Nevertheless, regardless of any trading theory or complex mathematical algorithm, the success in the markets lies with individual who can clearly understand the price-action and
make the decisions to pull the trigger at the right time with excellent discipline . These individuals possess a higher understanding of market theories, market psychology and
dynamics and money management methods and have mastered their execution skills. Charts, patterns, indicators and software are only basic market tools. Successful traders view
them just as tools and understand the usage. They build a theory and trade with a solid money management plan.
NZDJPY 1D TIME FRAMEThe chart shows a channel pattern since 2020 and now the pattern shows a multiple rejection at the top resistance zone . And now small correction in the price . And now the inside of the pattern shows a falling of price and it touches a near the Minor resistance zone .
wait for the breakout If it breaks the minor resistance it will go up to the major Resistance .
THIS IS OUR PRICE ACTION VIEW OF THIS SCRIPT .
THIS EDUCATIONAL PURPOSES ONLY MAKE A TRADE ON OWN ANALYSIS .
Understanding patterns - PART 1Patterns have been in use for as long as technical analysis have existed and are working today also, traders all over the world try to find patterns in chart to anticipate the possibility of the next move for any Index or stock. Pattern have a reason for working this greatly because all the patterns have an underlying psychology behind it and all these are driven by none other than the human emotions that lie behind them.
What are patterns?
According to John J Murphy "Price patterns are pictures or formations, which appear on price charts of stocks or commodities, that can be classified into different categories, and have a predictive value."
Putting it simply these are formations of candles which take a special shape when seen together and give you an idea of the future possible move of any script.
Why do patterns work?
Patterns work because they are the depiction of human emotions in the market and clearly shows what the traders in the market want a stock or commodity to do in a particular timeframe, now it must be odd and you may be thinking that how can a simple pattern or movement of the candles can tell you what is going inside the minds of people. Let me give you an idea so that you understand what is it that I mean by reading the minds of the traders using pattern and understanding what they want a particular stock or commodity to do.
The chart that you see above is hindalco which is listed on NSE.
To understand this let me tell you about the white lines you see, these are called trendlines and are made by connecting highs to highs or lows to lows to get an idea of the trend on current ongoing move or to make a pattern.
The pattern you see above is called ascending triangle pattern and is a bullish structure that when gives a breakout the stock or commodity gives a run for the upside.
Now the answer to the the question why ascending triangle pattern is bullish and how we get to anticipate the future movement lies in the human emotion or psychology that made this pattern in the market and it will also explain how you understand the human emotion in the market depicted as pattern.
This ascending triangle pattern is made by joining two line which I have named as trendline 1/resistance & trendline 2/support.
Trendline 1/Resistance shows us that the bears are not willing to let the price go beyond the levels of 470 and are shorting the stock near that price. Bears are wanting the stock to remain below the 470 price level.
Trendline2/Support tells us that the bulls are buying the stock on higher prices again and again that's the reason the trendline is inclined, bulls are wanting the stock to go up.
Now all of this tells us that right now bulls are more aggressive than the bears as bears are not willing to short below the price of 470 but bulls are ready to buy the stock at higher price and are the reason the price keeps surging up.
There comes a time when both the lines meet and there is no buffer space left between buyers and sellers and the price can now only go in single direction now, so bulls being more aggressive breaks the resistance of 470 and the price moves above it. Now there are two things that are going to happen:
1. More buyers will come in to buy as the resistance is broken making the price rally even more.
2.Short positions will have to be covered for, which will yet again make the price move up.
So that is how a mere pattern of a triangle joined by two line made you see the emotions of the traders inside the market and thus anticipate the future movement of price. Now this concept applies to all of the patterns there are in the market, some will be as simple as this one while others being more complex but all of these will make you a better trader letting you anticipate the movement.
This was the end of Part one of this series in which I'll be trying to make you understand patterns and trade more effectively using them.
The Next part will be the two main categories of pattern which will be in more depth and will actually help you anticipate the prices and add these pattern into your trading style.
If you have read it far enough so please give it a like and do follow me for the next part which I'll try to drop on the next weekend.
DLF: BULLISH SEQUENCEFollowing the 'rule' of wave theory , ''wave 4 should not enter into the territory of the wave 1" , stock has managed to keep its bullish outlook intact. moreover we have a HH HL formation on daily time frame which suggest that stock should move higher in wave 5 for new high in coming weeks.
Buy on cmp add on dips keep SL of 390 & look for the target of 440-50 .
Sheela Foam Limited (SFL) - New High formedStock has broken out to form a new high. Can be added for a swing trade
M&M FINANCE: Bullish (Ending Diagonal)This is the most common diagonal that can be found out at the ending of a main trend or main correction. It consists of all the waves 1-2-3-4-5 in a single or multiple zigzags. They can be found placed at 5th wave of an impulse wave or can been seen as a wave ‘C’ of a corrective waves zigzags or flat. After the termination of the ending diagonal , a swift & a sharp reversal takes place which bring the prices back to the level from where the diagonal began.
Trading Strategy:
Buy on cmp , add on dips , keep SL of 150 & look for the target of 173/180 zone
BANK NIFTY - MONTHLY EXPIRY (SEPTEMBER 24TH)BANK NIFTY ANALYSIS
AS PER THE FUTURES DATA THERE ARE NET SHORT POSITIONS IN THE MARKET AT CLOSING INDICATING SOME BEARISH SIGNS.
THE IMPORTANT LEVELS WERE ALREADY SHARED I.E 21100-20900 LEVELS WHICH IS STILL A VERY IMPORTANT LEVEL, HOWEVER MARKET BROKE THOSE LEVELS TODAY BUT IT GOT PRICE REJECTION AND MARKET BOUNCED SHARPLY UPSIDE AND CLOSED AROUND 21300 LEVELS.
ON THE UPSIDE 21400-21550 LEVELS IS AN IMPORTANT SUPPLY ZONE, IF BROKEN ABOVE WHICH MARKET CAN SEE BUYING TILL 21800 AND 22000 LEVELS.
DEMAND ZONES - 21100-20900//20550-20400//20000
SUPPLY ZONES - 21500-21600//21850-22050//22200
BANKNIFTY OPTION CHAIN ANALYSIS
AS PER THE OPTIONS CHAIN DATA THERE HAS BEEN PUT UNWINDING AT ALL LEVELS FROM 22000-21400 LEVELS AND GOOD AMOUNT OF CALL WRITING INDICATING MARKET IS LIKELY TO EXPIRE BELOW 21400 LEVELS AS OF NOW. THE LEVELS OF 21400-21550 LEVELS WILL ACT AS A MAJOR RESISTANCE FOR EXPIRY WHICH IS ALSO MARKED WITH HELP OF VOLUME PROFILE.
ON THE SUPPORT AT 21000 LEVELS THERE HAS BEEN GOOD AMOUNT OF CALL WRITING AND VERY SMALL AMOUNT OF PUT WRITING INDICATING MARKET CAN BREAK THE LEVELS OF 21000 AS WELL. BELOW THIS LEVELS THE NEXT MAJOR SUPPORT AREA IS 20500 LEVELS.
PLEASE TRADE WITH HIGH CAUTIONS - ITS EXPIRY DAY AND MARKET CAN WITNESS GOOD SWINGS AND VOLATILITY.
HERO MOTOCORP: Losing Trend Strength? HEROMOTOCORP: The stock has been into tight sideways consolidation since few week. The whole auto sector picked up, leaving behind hero motocorp. In todays session the price broke away from the kumo. Even on the weekly charts the price is below the kumo. RSI is into 60 – 40 zones, displaying no signs of strength as of now. To establish strength Heromotorcop needs to display strong price or momentum moves, failing to do so may intensify selling pressure. A strong close above 2750 may save the stock!
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ITC LTD_TREND ANALYSISAson 16/09/18, ITC is in downtrend in daily time frame. Crucial resistance level is 308.42 and crucial support level is 305.82 as per pivot points (fibonacci). Short ITC if it crosses 297 for target 290/287/280 with stoploss 311.40.
