Have a cautious look. These black lines are resistances. will metal continue to shine or will it loose its lustre.. waiting for any pattern if gets formed.
This fall was not possible to forecast , due to lots of international uncertainty in Metals trading , Now in my view it might recover for a few moves before heading for another drop , What we use is pattern which repeats and an theory which was developed by Few World wide Famous Analyst , on real time market action & re-action are differ from the most proven ...
structure looks positive to go on long side in metals with a positional view on metal stocks , globally metals are already beaten , so a sharp up move cannot be denied !
Nifty Metal NSE:CNXMETAL has been downtrend ever since mid January and metal stocks have been hammered black and blue due to the trade war worries between US and China.
However, the pullback this week from the lows of 3060 was quite strong and I can see a bottom formation here with RSI showing divergence.
Good opportunity to buy stocks like Hindustan ...
In weekly, after a strong uptrend, head & shoulder pattern formed then price broke the neckline and pattern confirmed.
Bolinger band is in downtrend and price is pushing the lower BB downwards.
So we can see selling pressure in metal stocks like tatasteel, hindzinc, welcorp, hindalco, vedanta etc.
After a long downtrend from 4300 levels, looks like Nifty Metal index NSE:CNXMETAL has managed to get some support at least temporarily at 3320 levels.
It will be interesting to see what happens at the trendline resistance which is currently around 3700 levels.
I can see a Double Bottom here with positive divergence and also a Morning Star formation.
Good ...
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