Chart Busters: Top trading set-ups to watch out for Friday
NIFTY halts at 20-DMA; price action against this level is important.
Extending its gains for the third day in a row, the NIFTY had a trending session on the expected lines. It opened higher and maintained its gains through the day as it gained 142.05 points over its previous close. The index has halted its increase just near the 20-DMA level which stands at 17610. In the process, the NIFTY has formed a higher top and higher bottom on the charts. The RSI has remained neutral and MACD too remains bearish but is seen moving towards a positive crossover. The price action of NIFTY against the levels of 17600 will be crucial; any move higher will see an extension of the current up move. Any move below this point will again push the markets into some consolidation.
Here are the top trading set-ups to watch out for Friday
After trading in a broad trading range for over four months, the stock has shown some signs of resumption of the up move. It is likely to break out of the present trading range supported by multiple technical evidence present on the charts. The stock now trades above all the key moving averages. The MACD is in continuing buy mode; the RSI is neutral and does not show any divergence against the price. Before the actual price breakout, the On-Balance-Volume (OBV) has formed a new high which acts as a confirmation from the volumes point of view. If the present trend continues, the stock may test 155-165 levels. The level of 128 may be considered as a stop-loss for this view.
SBIN has marked a classical double top resistance in the 542-545 area; the most recent price action has seen the stock accumulating near this crucial double top resistance. It has shown some signs of a potential breakout in the near term. The stock remains in PSAR continuing buy signal. The OBV has marked a new high ahead of the actual price breakout. Usually, OBV is regarded as a leading indicator and prices usually follow the OBV. MACD is in continuing buy mode. RSI is seen marking higher bottoms. The RS line of SBIN against the broader NIFTY500 index is in a firm uptrend and above 50-DMA. If the breakout happens on the intended lines, the stock may test 560-575 levels. Any close below 530 will negate this view.
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