Technical Call on HDFC BANK

Using a very simple and conventional technical technique - we now see that the 5 DMA and 10DMA  have started to rise over the 20 DMA - the simple rule generates a buy signal when the smaller moving averages are above the larger moving average and triggers a sell/short signal when the smaller moving average goes below the larger or 20 DMA. The application uses a variation of 5,10 and 20 DMA.

As we can see MACD has also generated a buy signal for HDFC BANK.

The equity has been finding and using 2275 as a support line. Short term call or target for HDFC BANK stands at  2350, 2400 and 2475

Are we Triangulating to 4800 ??

  

On the 25th of May, we discussed the possiblillity of the Nifty coming within a symmetrical triangular pattern. As assumed the Nifty did touch a low of 5328.7 yesterday and rebounded back to close on at 5348.95 

As I write Nifty today has rebounded and has been trading @5398 at 1137 AM. 

The common rule requires 2 major confirmations before the assumption of a symmetrical triangle.

1. The second high should be  lower than the first high with the upper line sloping down.

2. The second low should be higher than the first low and the lower line should slope up.

The pattern generally forms with 6 points before a break out occurs.  

Drawing major trendlines our upper limit before a down trend begins would be 5660-5690 . A short position could be assumed with a stop loss of 5750

With an Elliott Wave Outlook  the rally from 5177  (WAVE C) was described as an ‘X’ wave separating two sets of three-wave down moves. We should now definitely try to hold 5600-5650 as a safe haven and exit positions on every recovery to sell before a move down to 4800