NIFTY AUTO on a crucial support after breakdown on Daily. 38.2% fib retracement looks likely on the upside, where it can meet the next likely resistance.
The log-normal monthly chart of NSE Auto. The support is observed at the lower part of the parallel channel. Great time to accumulate sector stocks.
Auto Stocks may be at a crucial level. Index has been creating a falling wedge pattern closely following the mentioned trend line. A weekly close below the red line may be bearish and targets upto 9920 levels. Similarly weekly closing above the falling trend line may signal uptrend till previous highs. Lot depends on news flow and earnings so lets see...
Reference for positional trades
Nifty Auto index looks strong as long as it trades above the support. After breaking the resistance CNXAUTO is currently re-testing it.
A Failed Head and Shoulders, gave hopes for a rally but long traders got trapped as Everytime it tried to go up it faced selling Pressure.
NIFTY AUTO IS AT SUPPORT BE CAUTION TO SHORT THE AUTO SECTOR AFTER SEEING ASHOK LEYLAND AND BAJAJ AUTO
Journey towards 10800-11000 Bulls can pull breaks below 9784
Long term Bullish Target -- 13000 (+20.8%) Stop loss- 10280( -7.6%) Time Horizon -1 year After rebounding from the long term trend line and finding support at 10385 level we expect the long term to continue to reach 13000+ level in a years time.
In weekly, hidden bullish divergence seen. Also price bounced from flat lower BB It can move up to touch the middle/upper BB.
Here one of the Pattern identified by R N Elliott , where wave 1 will be the longest and wave 5 will be the shortest , Have your reviews , Regards
Bullish Flag is in making in NiftyAuto with breakout on close above 12100 Consolidation is likely to happen within range 11650-1170 on downside if these levels hold sooner or later breakout is likely to happen
As per wave analysis.. the next possible target can be 11775.00
NIftyAuto-near resistance of 11700 ,support comes at 11000 MNM-Hero motor-Maruti can lead
Auto index at high resistance ...n highs would be cut ...unless n until it closes above ....watch out guys caution ....