Chart Busters:Top trading set-ups to watch for Monday
There is a high probability of Indian benchmark indices opening with a big gap down.
The last eight days' price action is nothing but a counter-trend consolidation, the pennant pattern, which is a continuation pattern. As the prior trend is down, a breakdown will lead to a big decline. The target of this breakdown is at a minimum of 16124, and sooner or later, it can test the 15327-15100 zone of support, which is nothing but the broadening triangle's support line.
Go with the trend, and avoid the long positions as long as the benchmark trades below the 17457.
COALINDIA: The stock has broken the key supports and closed below the 20DMA and moving average ribbon. It took support at 50DMA at the day end. As the coal crisis increases, the stock has witnessed selling pressure along with high volume. The MACD histogram also shows an increased bearish momentum. RSI closed below the 50 zone and the parallel supports. The -DMI is above the +DMI and ADX, and ended below the Anchored VWAP. The stock formed five consecutive bearish candles on the Elder Impulse system, as all the indicators show bearish setups. In short, the stock closed below the key supports. A move below Rs 182 is negative, and it can test Rs 170. Maintain a stop loss at Rs 188.
M&MFIN: The stock has formed a shooting star candle at the swing high. It is at the upper Bollinger band. The RSI shows negative divergence. The MACD has also given a fresh sell signal. The decline from the day high on a high volume is showing an aggressive profit booking. The stock fell below the TEMA. The KST is about to give a bearish signal, and TSI is already in a bearish mode. In short, the stock has given weaker and showing exhaustion of the trend. A move below Rs 182 is negative and will test Rs 166. Maintain a stop loss at Rs 187.
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