FEDERAL BANK DOWN TREND BONSE:FEDERALBNK is facing multiple Resistance on Weekly Chart.
Currently trading near its long Down Trend Resistance level.
Also stock is taking support on 50 EMA (Week).
Stock is poised at crucial point now.
If Federak Bank gives BO from its Trend line Resistance & sustains, then we can see a Fresh long term upmove in stock.
FIrst target of upmove will be 95 & second target 110 on positional basis..
But if it fails to give BO then can fall till 50 EMA support (78) and further (70)..
Alwyas Trade with proper Stop Loss
**Educational Purpose
FEDS trade ideas
Swing Opportunity in Federal BankGo Long above 80.6 for Targets of 83.05, and 85.5 with SL 78.15
Reasons to go Long :
1. On a daily timeframe if we draw the Fibonacci retracement tool from recent swing low (point A) to recent swing high (point B) then we see stock took support from 0.618 Fibonacci level.
2. A bullish candlestick pattern ( Bullish Hammer ) marked with the orange color is formed around 0.618 Fibonacci level.
3. Also there is a strong support zone (marked with purple color), from which the stock is taking support and moving up.
4. The stock may go up to the trendline where it may face resistance.
Candlestick & Indicators TradingSwing Trade -
Increase in the RSI Strength
Morning Star at the key support
Buy above black line
SL Red Line
Target Green Line
There are people who likes to trade based on breakout or chart patterns only. But not all trades can be captured based on chart patterns and breakout trades are usually good for Intraday / BTST. Indicators and candlestick patterns can help to capture trade very early and can be very good for Swing or Positional Trades.
Anatomy of Cup & Handle Pattern Explained with examples ☕What is Cup & Handle Pattern ?
1.A cup and handle is a technical chart pattern that resembles a cup and handle where the cup is in the shape of a "u" and the handle has a slight downward drift.
2.A cup and handle is considered a bullish signal extending an uptrend, and is used to spot opportunities to go long.
3.Technical traders using this indicator should place a stop buy order slightly above the upper trendline of the handle part of the pattern.
Some Examples from -MY OWN ANALYSIS :-
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1 Cup with Handle Base
2 Saucer Base
The Saucer base is basically a long, drawn out cup base. Characteristics of a Saucer are:
1. A depth of 12-20%.
2. A length of 7 weeks to more than a year.
3. If a handle forms then the buy point is the peak just before the pull back plus 10 points.
4. However a handle will often not form after the long period of this base. If there is no handle then the buy point is the peak on the left side of the saucer plus 10 points.
3 Tight Closes and Narrow Price Spreads
Double Bottom
Flat Base – (Second Stage)
Second stage base that follows an uptrend off of a stage 1 proper base (cup with saucer, saucer, double bottom ) and an uptrend
Tight Closes and Narrow Price Spreads
Prior Sequence
1. Uptrend
2. Proper Base
4 Ascending Base – (Second Stage)
Second stage base that follows an uptrend off of a stage 1 proper base (cup with saucer, saucer, double bottom ) and an uptrend
Pull-backs occur at general market declines
Square Box – (Second Stage)
Second stage base that follows an uptrend off of a stage 1 proper base (cup with saucer, saucer, double bottom ) and an uptrend
Buy Point = $ 0.10 above highest peak
< 10-15%
4 – 7 Weeks
5 3 – 4 Weeks Tight – (Second Stage)
Second stage base that follows an uptrend off of a stage 1 proper base (cup with saucer, saucer, double bottom ) and an uptrend.
Volume over 3 – 4 weeks is well under control
Weekly closes within 1%, however, 1 week can be 1.5%
Opportunity to add
High Tight Flag
The pattern forms when a stock surges 100% to 120% in four to eight weeks. The stock then corrects 10% to 25% in three to five weeks. The ideal buy point is the high of the flag plus 10 Points
Breakout from Proper Base followed by price run-up of > 100% within 4-8 weeks
3 – 5 weeks correction between 10 – 25%
Buy Point = 0.10 higher than peak of correction
6 Base on Base
If an uptrend is less than 20% and the stock builds another base, it's called a "base-on-base" pattern and is counted as part of the previous base
Conclusion
The cup and handle pattern is a bullish continuation pattern triggered by consolidation after a strong upward trend. The pattern takes some time to develop, but is relatively straightforward to recognize and trade on once it forms. As with all chart patterns, trading volume and additional indicators should be used to confirm a breakout and continuation of the original bullish price movement.
Federal bank - Triangle pattern breakout🔴DISCLAIMER
***** It's just for an educational purpose and so you must also follow your own technical analysis before taking up the trade ******
Aggressive traders enter at the breakout and conservative traders may give entry after retracement (Retracement is optional, we cannot expect every stock to take a retest after the breakout, it may also continue to have its bullish pressure after the breakout)
After reaching our targets, trail your stop loss to get maximum profit from the stock in a single trade
Comments
How to Identify the trend in the Stock? - EducationHi Guys,
Welcome to Thenali Views?
Today we are going to learn how to identify the trend?
What is Trend in the Market?
In layman language: Stock moves higher and higher its uptrend or Stock moves lower and lower in downtrend.
Then....
What is a Range Bound or Consolidation?
When the stock moves in a within range for period time its consolidation.
But you look at broader picture of the market, it's has 4 Stages....
Stage 1 : Accumulation:
This stage occurs after a decline in price and looks like a range market in a downtrend.
Its Look things for:
1. Occurs after the price fallen over a period of last 4 months to 5months or more in daily time frame.
2. It looks like a range market with support and resistance in a downtrend.
3. 200 days Moving Average looks flat.
4. The Price move back and forth around 200 days moving average.
Stage 2: Advancing:
After the price breaks out the accumulation phase, its move to advancing phase (an Uptrend)
In this Stage:
1. Its usually occurs after the price breaks out the accumulation phase.
2. Here its a important thing... the price forms Higher Highs and Higher Lows.
3. Short term MA (Ex. MA50 or MA20) is above MA200.
4. MA200 pointing higher and price of script is higher above MA200.
Stage 3: Distribution:
Distribution usually occur after advancing phase (Uptrend) and its look like a consolidation.
In this Stage:
1. Its usually occur when the price have risen over the past 6 months or more
2. Its looks like a long period of consolidation during uptrend
3. The 200MA tends to flatten out after price decline
4. The price tends to move back and forth around MA200.
Stage 4: Final Stage: Declining:
After the price breaks as result of distribution phase, its goes to declining stage ( Downtrend).
In this Stage:
1. It usually occurs after the price breaks the distribution zone.
2. Here its important...the price forms a series of Lower High and Lower Lows.
3. Short term MA (Ex. MA50 or MA20) are below long term MA (200MA)
4. MA200 is pointing lower and price below the MA200.
So Guys in this we have learned the stages of trend in the market.
In this chart we can analysis the trend.
FEDERAL BANK ABOUT TO BREAKOUTThere is a Long Term Trendline from 2017 and has made 3 attempts to break this TL. Once in March and there was a fake out in July and now I expect a breakout of this long term Trend Line.
Can go long on a breakout with volume and a retest with a Bullish followup Candle for the following targets.
T1-96
T2-108