This is weekly chart of TATAELXSI on NSE (INDIA). It looks good for a long trade based on following justification (CMP @1036.65):
1. Refer the trendline drawn on the chart which has been tested thrice shown by arrows which establishes it as good trending support.
2. Prior to rising this week, it has consolidated for two weeks. Also a bull horns may also be witnessed (8th Oct & 22nd Oct 2018)
3. It is oversold as marked on Stochastic RSI. It is also observed that reversal signal accompanied with similar situation, has been reliable.
4. Although current weekly candle is not yet closed which is however likely to close in green with bullish kicker formation.
5. Bullish divergence can be observed on Bollinger Band.
6. Immediate resistance lies in price zone 1123 to 1150 zone which is drawn on the chart based on price action while support is at 950 (as drawn on the chart)
In view of above, it looks a good scrip to be in long to ride the upcoming trend with trailing stops.
Happy trading !!!
1. Refer the trendline drawn on the chart which has been tested thrice shown by arrows which establishes it as good trending support.
2. Prior to rising this week, it has consolidated for two weeks. Also a bull horns may also be witnessed (8th Oct & 22nd Oct 2018)
3. It is oversold as marked on Stochastic RSI. It is also observed that reversal signal accompanied with similar situation, has been reliable.
4. Although current weekly candle is not yet closed which is however likely to close in green with bullish kicker formation.
5. Bullish divergence can be observed on Bollinger Band.
6. Immediate resistance lies in price zone 1123 to 1150 zone which is drawn on the chart based on price action while support is at 950 (as drawn on the chart)
In view of above, it looks a good scrip to be in long to ride the upcoming trend with trailing stops.
Happy trading !!!