Welspun India, looks to be in consolidation with volatility and slightly negative bias. Short below 59 for target of 54 , long above 63 for target of 68 with training stoploss not more than 2 to 3 rupees.
WELSPUN INDIA HAS FORMED DOUBLE BOTTOM PATTERN AND VOLUMES ARE MORE ON RISING DAYS AND LESS ON FALLING DAYS IT ALSO GAVE A SHAKEOUT NEAR BOTTOM AND ALSO BROKEOUT TRENDLINE WHICH MAKES IT A GOOD BET. ONE MORE THING NOT REALTED TO TECHNICAL BUT IT IS FUNDAMENTAL AS THE RUPEE IS FALLING IT IS GOOD FOR WELSPUN AS IT EXPORTS 90% OF IT GOODS TO FOREIGN COUNTRIES AND ...
1) IF IT FORMS THE GREEN CANDLE & MOVES UP, THE UP TREND LINE & SUPPORT LINE ARE VALIDATED
2) IF IT FORMS RED CANDLE AND MOVES DOWNWARDS AND TAKE SUPPORT, THEN THE 2ND SUPPORT LINE WILL BE VALIDATED
3) FOLLOW THE PRICE ACTION TRADING STRATEGY
4) MINIMIZE THE LOSS
Share has formed Marubozu pattern (Shown in black box). Relative Strength Index is also supporting Price Rise (Shown by blue lines and black arrow). All these things indicate that share price will go up.
Reversal could be on cards as the scrip to managed to thrice, pullback from crucial support level in past 3 months
TP = 85, 94 Managing to break the resistance level 2 as earlier if nifty supports beyond 9600, bulls should manage to pull near 52 week highs
William% also in oversold stage