Clearly divergence in MACD and RSI are telling the forthcoming weakness that too at the level of multiple resistance so one can take chance by shorting the stock. STOP LOSS Little above the recent high. Just to mention that divergence at the top are relatively tricky comparing to formed at bottom.
I am looking this stock may take a pause near 3035 and then reverse , if not done on smaller time frame then my next level of reversal forecast is 2500 , once this makes the reversal further up side move is very good , One can look to stay for 6 months above to see the target of 4500
Bajaj Auto has been in an uptrend. However the signs of reversal can be seen from 3324 level.
Hence, the idea is to short the script with the following targets:
T1 - 3200
T2 - 3146
SL - 3325
Stop loss is on closing basis only.
Stoploss:- 3230-3250 ( As per Risk Apetite )
Risk averse traders can buy on dips ...
OI addition:- 4% Increasing with increase in Price....Which means Longs are building up
Levels are Explained in Chart. When 1st Target Achieved Book 50% Quantity. And Trail Your SL to Entry Price. No Technique Can make money for you, if you don't follow disciplinary principals. Risk Management & Position sizing is must before entering any trade.
Wolfe wave is one of my favourite trading patterns as it works mostly, provides good Risk to reward ratio and is fast. Posting a nicely formed pattern for my mates wishing that it rewards them nicely on Diwali. Entry now or wherever Stop Loss of 3210 is affordable Target range 3050 - 3100.