This is a quick continuation to my previous analysis on HDFC Bank
I have shown the daily charts on the same to decipher what could be the possible future movements in the stock
HDFC Bank, like BankNifty has been in a secular uptrend for a longtime as shared in my previous charts (trend line has acted as support )
To the right side of the chart, I have shown the recent price action, which is indicating bulls trying to push the price upwards, while they face resistance on the line at 1282.30 after an uptrend, now falling momentarily into a congestion zone. Over the last 10 trading sessions, most days price has tried to breach the above levels, but have failed.
. There is one very interesting thing that has happened recently
Price made a low of 1252.50 on 20th Jan 2020 and next day gapped lower and made a high of 1250.00, closing even lower
Since this is a downward falling window (in Japanese candlestick terminology), as indicated the most important point in this going ahead is 1252.50 . Note the area denoted in the blue line indicates where no trade was done and will act as a resistance zone going ahead, if price were to move upwards. Also note, in case this zone is breached and we have a candle close above this price, then this zone becomes invalid going ahead and is not expected to act as a support zone going ahead.
On the left side of the chart, I have applied cycle analysis to see some probabilistic moves going ahead. With this information being added, now lets look at what is expected going ahead.
We expect the following
1. Price is expected to make a low near the end of the month as per the FLD indicator. Note, price is currently not only going to find resistance from the gapped area, but it is also below the 34 day moving average and that MA has showed to be an area of support/ resistance in the past. I think price will move in a narrow range going ahead for a few sessions and will try and build a base of lows and add a level of support zone for future.
2. Price is expected to try and push higher from the lows all through February and in this time will try and test the identified resistance zone
Note : Intensity of top/ highs and bottoms/ corrections during this cycle will determine how much correction to expect going ahead. For example, if price tests the trend line during the month of Feb and breaches the resistance zone and closes above Moving average, then maybe on the corrective wave down, price may not fall sharply / or may find higher support levels, hence the need to continuously monitor the chart and extract as much information as possible from price movements
Look ahead for more details on this
If you like what you read, please share a thumbs uo
Cheers
I have shown the daily charts on the same to decipher what could be the possible future movements in the stock
HDFC Bank, like BankNifty has been in a secular uptrend for a longtime as shared in my previous charts (trend line has acted as support )
To the right side of the chart, I have shown the recent price action, which is indicating bulls trying to push the price upwards, while they face resistance on the line at 1282.30 after an uptrend, now falling momentarily into a congestion zone. Over the last 10 trading sessions, most days price has tried to breach the above levels, but have failed.
. There is one very interesting thing that has happened recently
Price made a low of 1252.50 on 20th Jan 2020 and next day gapped lower and made a high of 1250.00, closing even lower
Since this is a downward falling window (in Japanese candlestick terminology), as indicated the most important point in this going ahead is 1252.50 . Note the area denoted in the blue line indicates where no trade was done and will act as a resistance zone going ahead, if price were to move upwards. Also note, in case this zone is breached and we have a candle close above this price, then this zone becomes invalid going ahead and is not expected to act as a support zone going ahead.
On the left side of the chart, I have applied cycle analysis to see some probabilistic moves going ahead. With this information being added, now lets look at what is expected going ahead.
We expect the following
1. Price is expected to make a low near the end of the month as per the FLD indicator. Note, price is currently not only going to find resistance from the gapped area, but it is also below the 34 day moving average and that MA has showed to be an area of support/ resistance in the past. I think price will move in a narrow range going ahead for a few sessions and will try and build a base of lows and add a level of support zone for future.
2. Price is expected to try and push higher from the lows all through February and in this time will try and test the identified resistance zone
Note : Intensity of top/ highs and bottoms/ corrections during this cycle will determine how much correction to expect going ahead. For example, if price tests the trend line during the month of Feb and breaches the resistance zone and closes above Moving average, then maybe on the corrective wave down, price may not fall sharply / or may find higher support levels, hence the need to continuously monitor the chart and extract as much information as possible from price movements
Look ahead for more details on this
If you like what you read, please share a thumbs uo
Cheers
Comment:
As we can see, intra day price is trying to break the downward dropping window, which may now act at resistance. Close of daily candle above the top 1252.50 will be critical for pushing the bears out at least momentarily! Keep an eye on the larger index as well as the BankNifty
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