Chart Busters: Top trading set-ups to watch for Friday
The benchmark index closed at a bullish flag resistance on a 75-minute chart in the last session. In any case, if the index closes above 16646 with a volume, the breakout will confirm and it will lead to the resumption of an uptrend.
The Nifty has been consolidating for the last three days, after moving almost 5% in just three days. In the last five sessions, the Nifty is up by 458 points or 2.83%. This big move happened only in just two days. After such a sharp up move, consolidation is expected.
After two indecisive and bearish candles, on Thursday, it has formed a strong bullish candle. But, the concern is that the benchmark index has formed an inside bar. The Nifty has formed the second inside bar in the last four trading sessions. As the volume also improved and was higher than the previous days, we can assume that the buying interest is there. The flag breakout must attract a higher volume; otherwise, the breakout may not sustain for a longer period. The next resistance is at 16885, and the flag pattern target is at 17230.
The stock closed at the prior parallel swing highs. It formed higher bottoms and traded above the key moving averages. It is above the moving average ribbon along with the MACD line above zero line. It is trading 5.96 above the 50DMA and 5.09% above the 20DMA and closed above the Anchored VWAP resistance. The TSI and KST indicators have given a bullish signal, while the RSI is in a strong bullish zone. The directional indicators are expanding from the influx point, which may result in an impulsive move. The massive volume shows the buying interest in the stock. In short, the stock shows bullish signs. A move above Rs 18340 is positive, and it can test Rs 19724. Maintain a stop loss at Rs 17989.
The stock has formed a base between Rs2035-2045. The 50DMA has been acting as a support for the past four days. It closed near the prior swing high and has broken out of a downward channel with Bollinger bands flattened. Higher volume indicates the buying interest. The MACD has given a fresh buy signal on the zero line, while the RSI is above the 55 zone and entering into a strong bullish zone. Trading above the Anchored VWAP resistance. The TSI indicator has given a strong bullish signal and Elder Impulse System has formed four successive bullish bars. In short, the stock is near the base resistance. A move above Rs 2226 is positive, and it can test Rs 2310. Maintain a stop loss at Rs 2172.
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DisclaimerInvestment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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