Chart Busters: Top trading set-ups to watch for Thursday
Despite a good 150-plus points of recovery from the low point of the day, NIFTY continued to end with a net loss of 187.95 points or -1.12%. In the process, it has formed a spinning top and also formed a bullish harami cross on the candles. Such a formation is like an “Inside Bar”, this will be confirmed if the high of the previous candle, i.e., 16815 is taken out convincingly. As we head into weekly options expiry, NIFTY’s price behaviour against the levels of 16500 will be crucial. The Index will have to keep its head above this point to prevent any incremental weakness from creeping in.
EASEMYTRIP has been under a classical rectangle formation; the stock appears trapped in a sideways narrow range between 260-300 levels. The stock has been in this trajectory for over four months now; multiple signs have emerged that hint at a potential breakout. The MACD is on the verge of a positive crossover. The stock has successfully bounced off from its 200-DMA which presently stands at 245. The RSI has marked a new 14-period high which is bullish. RSI also shows a strong bullish divergence against the price. The OBV has marked a new high which is ahead of the actual price breakout. If the present technical structure is resolved on the expected lines, the stock may test 320, and 355 levels going ahead. Any close below the 255 levels will negate this view.
After marking a high near 1918, the stock has been on a narrow trajectory. Presently the stock is seen moving in a sideways trajectory and fiercely consolidating near higher levels. It is presently under a Bollinger Band squeeze. The squeeze is because of a low volatility period where the bands narrow; such periods are followed by periods of high volatility when the stock takes a directional bias. A fresh PSAR buy signal has emerged. MACD has shown a positive crossover; it is bullish and above the signal line. The stock is inside the leading quadrant of the RRG; it is set to relatively outperform the broader markets. The RS line against the broader markets has hit a new high. If the breakout happens on the anticipated lines, the stock is set to test 1920, 1950 levels. Any close below the 1820 level will negate this view.
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