The stock is trading above its 200 DMA in its daily chart. But the stock is showing weakness at higher levels. There is an important support line shown in daily chart, a breach of this line could bring the stock back to its 200 DMA.
Nifty has broken out of the five week trading range of 5349 - 5492. Now this breakout is targeting a number above 5600. But the corrections should be limited 5486 on closing basis.
The index has closed above 5 day high ema.
The third chart shows easy entries on a range breakout. If one has the patients to wait for such good entries he or she can get profits easily. But they may only get one or two profitable trades in a month. As my MASTER (ILANGO) Use to say "You will feel happy with one or two good trades in a month. Get rich slowly".
Finally one more thing i have observed is that the reversal from below 20 SMA has given good profits. This happens when the stock or the index is in an Up trend.
All the contents of niftychartsandpatterns are for educational purposes only and are not Investment Advice or recommendations offered to any person(s) with respect to the purchase or sale of the stocks / futures. Niftychartsandpatterns shall not be held responsible for the actions of individuals, parties, or corporations taken in response to the ideas, thoughts, concepts or information presented in this blog. Hence all the visitors are requested to apply their prudence and consult their financial or investment adviser before acting on any of the Ideas in this blog.
"All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis." —Jesse Livermore