Chart Busters: Top trading set-ups to watch on June 15
The Nifty tested the March 08 low at the opening bell on Tuesday. and later it bounced to the previous day's opening level.
The 193-point bounce from the opening low did not sustain till the end, with the profit booking emerging at higher levels, and forming a shoot star kind of candle. Though it tested the 15670, the bears failed to close below the previous low. Now, it may consolidate for some time before closing below the 15671. There was hidden divergence on a 75 minutes chart. It needs to close above the 15858 on an hourly basis to test the gap area. Above 15858, it can test 16100. We expect that short-term bounces would be common in this bear market. The stop losses must be a little higher compared to the normal levels.
As the Nifty has formed multiple parallel bottoms, and as long as these bottoms are protected, be cautious on the downside. The index also closed below the Bollinger lower band, so expect some consolidation before resuming the downtrend. MACD histogram shows an increased momentum on the downside. The zone of 15886-15659 is crucial for both directions.
The stock has broken the double-top pattern with higher volume. It has also closed below the key moving averages and Moving average ribbon. The RSI also ended below the prior swing low and confirmed bearish implications. The MACD histogram shows an increased bearish momentum, while the -DMI is just crossed the +DMI and ADX from an influx point and expects an impulsive move. It has formed three consecutive bearish bars in the Elder impulse system. The KST and TSI have given sell signals and is also below the Anchored VWAP support. In short, the stock has broken the bearish pattern. A move below Rs 214 is negative, and it can test Rs 205. Maintain a stop loss at Rs 219.
The stock has broken the counter-trend pattern and sustained below the 20DMA for the second day. It is below the 50DMA and moving average ribbon. The RSI declined to a bearish zone. MACD is about to give a sell signal below the zero line and volume indicates distribution. It formed a series of bearish candles on the Elder impulse system, with the TSI giving a sell signal, and it is below the Anchored VWAP. In short, the stock has broken the key support and resumed the downtrend. A move below Rs 3400 is negative, and it can test Rs 3334. Maintain a stop loss at Rs 3465. Below Rs 3334, it can test Rs 3197.
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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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