Chart Busters: Top trading set-ups to watch for Thursday
In a strong and positive session on Wednesday, the NIFTY had a short-covering fueled rally as it closed the day with decent gain of 312.35 points or 1.87%. In the process, it has made a white candle and has ended just below the 200-DMA which presently stands at 16988. Since the rally has come in completely due to short covering as indicated by F&O data, it is unlikely to take out 200-DMA easily unless the markets see a significant thrust.
BRIGADE has been trading in a sideways trajectory; it has formed a defined trading range between 430-520 levels. Over the past couple of months, the prices have stayed in a rectangle formation while not taking any major directional cue. After some recent consolidation, the stock has tried to resume its up move. Presently it has halted its move near 50-DMA which presently stands at 482. The OBV has shown a breakout ahead of the actual price breakout which is bullish. RS line against the broader NIFTY500 has crossed above 50-DMA. While RSI is neutral, MACD has shown a positive crossover; it is bullish and above the signal line. The stock can test 498-510 levels over the coming days. Any close below 460 will negate this view.
The stock has grossly underperformed the broader markets. It corrected from 4100 and after testing the most recent low point near 3050, the stock has shown some signs of formation of a potential base for itself. The PSAR has shown a fresh buy signal. The increase in volumes near the final phase of the decline also hints at a potential bottom formation. The RSI has marked a new 14-period high which is bullish. It also shows a classical bullish failure swing on the charts. If the technical pullback continues on the expected lines, the stock may test 3400-3450 levels over the coming days. Any close below 3200 will negate this view.
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