A trendline breakout on the monthly chart asserts that the stock or index is ready to move higher, with an optimistic outlook.
Out of these 344 stocks, 211 stocks are trading with a positive crossover. This scenario indicates that over 50 per cent stocks are signalling positive bias.
A number of market participants trade only on the basis of support and resistance zones. This seems risky, but over the years, this theory has proven to be a reliable trading model.
As of now, the downside is limited in mid-cap banks with volumes staying subdued.
The technical analysis revolves around three major indicators: the price indicator, volume, and basic technical indicators that determine strength, oscillation, and momentum.
The golden ratio is typically translated into three percentages: 38.2 per cent, 50 per cent, and 61.8 per cent, which are considered key retracement levels for a stock or an index.
This pattern signals a bearish sentiment and one should be cautious once this pattern is visible on the charts.
Failure to exit a trade may create disparity on the breakout strategy.
With the benchmark indices trading in a narrow range on Monday, here are key levels for index heavyweights that can help you plan your trading strategy.
The most widely used, the 200 DMA, is a technical indicator used to analyse and identify long term trends
This is viewed as an extremely bullish pattern as continuous three positive closes indicate the beginning of a strong buying
For Nifty IT, the immediate support comes in at 16,400 levels on a closing basis and the rally should move towards 17,500 and 17,700 levels.
Whenever the 'Aroon Up' shows sideways movement, the price is expected to show mild-to-severe correction, but it helps to identify the upcoming change.
Rising channel patterns, stability above 200-DMA are some of the indicators that suggest further upside.
Most stocks need to conquer their 200-DMA for the next surge.
Petrol prices on Friday crossed the Rs-80 mark in Delhi as OMCs announced the 20th hike in a row. Petrol price was increased by 21 paise to Rs 80.13 per litre in Delhi. Diesel jumped by 17 paise
One can develop his/her own remote model, which should be able to achieve over 80 per cent accuracy.
Better the confirmation, stronger the view. It is wise to wait for the next session to give an appropriate confirmation. A green close suggests upward rally and a red close indicates weakness.
Pharma stocks provide a good hedge as the markets slip from recent highs. For the Sensex, 32,400 level remains key
Once the stock breaks out, wait for the rally to sustain with decent volumes. Volatility in volume structure reflects uncertainty and indecision. It is better to hold nerves and let the price settle.