Lets take a look at one of the largest public banks in India which now is downgraded to a SELL SELL SELL
The stock traded a high of 2960 on April 25th and hit rock bottom on May 25th touching 2167.
It makes its way back up retracing 23.6% (Fibo Magic) and hits a double bottom on the 20th of June hitting 2120 this time ! The stock had discarded almost 30% of its value in 2 months.
The stock has now retraced back to its 50% levles ({H 2960 +L 2120}/2 = 2540) and yesterday hit a high of 2528 but lost steam and closed at 2471.
Stochastics and CCI Indicators had generated a SELL signal at 2475 levels on the 8th July but we did not have a candlestick confirmation. The stochastics and CCI indicators have yet again generated a sell signal and now we have a Dark Cloud Cover Candlestick indication that the bubble is now about to bust !
We are definitely taking an intra-day SHORT on this one @ 2480-90 levels. Lows for the day could hit 2440 if Volumes kick in !
50% Retracement level from Low of 2120 and High of 2528 kicks into effect @2324
Please keep in mind that the FII's may start dumping stocks as the RBI reviews its policy on the 26th of July and most analysts do expect a hike of 25-50 bps.
Happy Trading
The stock traded a high of 2960 on April 25th and hit rock bottom on May 25th touching 2167.
It makes its way back up retracing 23.6% (Fibo Magic) and hits a double bottom on the 20th of June hitting 2120 this time ! The stock had discarded almost 30% of its value in 2 months.
The stock has now retraced back to its 50% levles ({H 2960 +L 2120}/2 = 2540) and yesterday hit a high of 2528 but lost steam and closed at 2471.
Stochastics and CCI Indicators had generated a SELL signal at 2475 levels on the 8th July but we did not have a candlestick confirmation. The stochastics and CCI indicators have yet again generated a sell signal and now we have a Dark Cloud Cover Candlestick indication that the bubble is now about to bust !
We are definitely taking an intra-day SHORT on this one @ 2480-90 levels. Lows for the day could hit 2440 if Volumes kick in !
50% Retracement level from Low of 2120 and High of 2528 kicks into effect @2324
Please keep in mind that the FII's may start dumping stocks as the RBI reviews its policy on the 26th of July and most analysts do expect a hike of 25-50 bps.
Happy Trading
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