1. Support at Rising Trendline and Horizontal Support:
The candle on the weekly chart appears to have found support at both the rising trendline and a horizontal support level. Finding support at these levels indicates a potential area where buying pressure might be present, reinforcing the bullish sentiment for the stock.
2. RSI Signals:
You mentioned that the RSI is signaling that selling pressure is exhausted. If the Relative Strength Index (RSI) has been in oversold territory or is showing signs of a bullish reversal, it could suggest that the stock might be poised for an upward movement.
Proposed Trade Strategy:
Entry: Consider initiating a long position at the current market price (CMP) of 148. This entry is based on the supportive indicators from the rising trendline, horizontal support, and the RSI exhaustion of selling pressure.
Stop Loss (SL): To manage risk, a stop loss at 130 might be placed. This level is selected to account for potential price fluctuations while limiting potential losses.
Target: Aim for a target price of 182. This target aligns with the bullish indication provided by the support levels and RSI signals. It represents a potential upward movement in the stock's price.
Conclusion:
The technical analysis suggests a bullish sentiment for RAIN based on the candle finding support at both the rising trendline and horizontal support, as well as the RSI indicating the exhaustion of selling pressure.
Please note that trading in the stock market involves risks, and no analysis can guarantee specific outcomes. Market conditions change, and it's advisable to use sound risk management practices, conduct your own analysis, and, if possible, consult with a financial advisor before making any investment decisions.
The candle on the weekly chart appears to have found support at both the rising trendline and a horizontal support level. Finding support at these levels indicates a potential area where buying pressure might be present, reinforcing the bullish sentiment for the stock.
2. RSI Signals:
You mentioned that the RSI is signaling that selling pressure is exhausted. If the Relative Strength Index (RSI) has been in oversold territory or is showing signs of a bullish reversal, it could suggest that the stock might be poised for an upward movement.
Proposed Trade Strategy:
Entry: Consider initiating a long position at the current market price (CMP) of 148. This entry is based on the supportive indicators from the rising trendline, horizontal support, and the RSI exhaustion of selling pressure.
Stop Loss (SL): To manage risk, a stop loss at 130 might be placed. This level is selected to account for potential price fluctuations while limiting potential losses.
Target: Aim for a target price of 182. This target aligns with the bullish indication provided by the support levels and RSI signals. It represents a potential upward movement in the stock's price.
Conclusion:
The technical analysis suggests a bullish sentiment for RAIN based on the candle finding support at both the rising trendline and horizontal support, as well as the RSI indicating the exhaustion of selling pressure.
Please note that trading in the stock market involves risks, and no analysis can guarantee specific outcomes. Market conditions change, and it's advisable to use sound risk management practices, conduct your own analysis, and, if possible, consult with a financial advisor before making any investment decisions.