How to use the technicals to make money ?
1. 300 to 340 can be a good accumulation zone
2. Buying a stock with SL (DCB) of 245 for mid term can fetch good returns
3. Ultimate target is 600+
IMPORTANT : Maximum allocation
Risk of 2% of trading capital
10% funds of total portfolio funds
Whichever is lower
HeroMoto is giving a bearish indication on various parameters.
1. In a strong supply zone. Unable to sustain at those levels.
2. Negative RSI divergence (Mere RSI divergence is not a trigger for a trade, but in combination with other factors, it acts as an additional trigger)
3. Probable Trendline break, on downside
4. Head & Shoulder pattern under formation....
Have clearly mentioned 3 signs of bullish reversal, that’s the backbone of this trade setup.
We should look for 2+ confirmations before taking up a trade or finalising the trade setup.
This is a weekly TF setup and represents a 2 months to 12 months view.
Not a buy recommendation, simply trying to list down my observations.
DO YOUE OWN ANALYSIS.
Looks like a tired stock. (based on monthly TF)
If you're holding it, day close below 459 could be the SL zone. (+/- 2%)
If you want to add, better to add after break above 590.
700+ can be a mid term target.
if it keeps on consolidating near 50WMA and breaks above 570 with good volume, can fetch good returns for a short term swing position.