Day Trade - Symmetric Triangle on MuthootfinTrade Long:
Long entry - 513.50
Target - 518
Stop loss - 510.50
Trade Short
Short Entry - 508
Target - 503
Stop loss - 511.50
Note - Trend seems upside
MUTHOOTFIN trade ideas
Muthoot Finance- Symmetrical triangle breakout- Buy The major trend of the stock has been uptrend but lately it was contracting in a narrow range forming lower highs and higher lows called the symmetrical triangle. Today it has given a breakout with volumes. Enter if the breakout sustains by end of the day with 464 as stop loss for a target of 525-535.
Bounce from trend line support MUTHOOTFIN bounce from trend line support add near 448 for target 480/500 stop loss close below 435.
Muthoot Fina-lly Completes A “Bearish ABCD” PatternTargets : 403-349 Sell range : 450-460 Stoploss : 511 Duration : 4-5 weeks
Outlook :
The stock is in strong uptrend as it continues to conquer uncharted territories in a rising peak and trough manner. Stock has jumped by more than 50% in last Six Month from its lowest level of 265.0 dt 26-Dec-16.
The key observation on the price chart of Muthoot Finance is that the stocks gradual upmove of the last 5-6 months seems to have completed, as the stock price has started to show weakness from the highs during this week.
Initial evidence of a beginning of declines is visible, as the stock price has lost momentum near Rs 482-480 levels (161.8% of prior corrective move from Rs 406.80 (August 2016) to the levels of Rs 262 (December 2016)), thus forming CD Leg of a Bearish Harmonic setup known to be “Bearish ABCD” Pattern.
Further, Bearish engulfing Candlestick pattern was formed by the stock on 21/06/2017 and Three outside down Candlestick pattern was formed as on 22/06/2017 on the Daily charts, whereas on weekly charts “Bearish Engulfing” Candlestick pattern was formed (shown in red circular object) which is indicating a bearish momentum in coming weeks..
Weekly 14 period’s RSI is in downtrend forming a “Regular Bearish Divergence” with Lower highs and is seen crossing below 70 levels thus supports the negative bias in stocks price.
Based on the above technical observation, we expect the stock price to head towards Rs 403-349 in the coming months, as it is the 38.2% and 61.8% retracement levels respectively (minimum said targets for the above said pattern), Hence advise to sell at CMP and also at rallies. Entry and EXIT levels are mentioned above.
Muthoot Fin:- Amazing set upThe stock has been trading inside a channel for a very long time. CMP 466 ;My view the stock is surely heading for 500+. Please do post your comments below what you feel abt the stock price.
Like and share and support!!!
Breakdown - Muthoot FinanceMuthoot Finance has broken down from its symmetrical triangle pattern and target of 270 can be achieved. Once can go short with a target of 280/270. Given its good fundamentals one can go long again at 270.
Muthoot Finance - Breaks Symmetrical Triangle It is been observed that the price action breaks out from a symmetrical triangle on a daily chart, indicating a strong selling and further weakness ahead. It is important to confirm the breakout with a close below 350 levels.
T1: 325
T2: 310
T3: 300
Stoploss: 370
Muthoot Finance-Symmetrical Triangle Formation-Awaiting BreakoutAs seen after a strong uptrend price has been contracting in a narrow range, making lower highs and higher lows (symmetrical triangle) in the daily chart. A breakout with volumes on either side will decide the trend of this stock.
I would be more interested in the breakout on the upside as it is the primary trend. I will keep this stock in watchlist and review it once it gives a breakout.
