Bajaj Auto - The stock as broken out of major support zone as well as broken a long term ternd-line.
There is a window (gap) created wich indicated high selling pressure and the window will act as a resistance as well.
Keeping our stop above the window and target in the next support zone, the risk to reward comes to be 2.5.
NSE:BAJAJ_AUTO
The stock is at an interesting position.
The AB leg made 61.8% retracement of leg 0A and now the leg BC is making 61.8 retracement of leg AB.
If the stock brakes the low of gravestone doji this is formed 2 days ago and sustains below it the short for target of recent low.
If stock brakes the high of the doji then buy for target of swing high.
In Both cases...
The stock recently moved above 200 day moving average after long period.
This move comes with good volumes and strong candlestick pattern.
Also the stock has broken its counter trend-line.
If the stock sustains above the 200 day simple moving average, then 10 % move is possible.
Keep the stop below the low of recent candle.
Risk to reward of 2.4. NSE:KPIT
