Modi's demonetization effort has bit the Indian economy quite hard. Perhaps there is a case to be made from a long term perspective that the banking sector is a buy after the recent sell off. Given the technicals and on going chaos, I'm going to wait and see if a better buying opportunity emerges. Possible targets are the parole black lines.
After a breakout from a long trending channel, the price action has formed another triangle formation that is likely to break downside in order to confirm previous resistance as new support.
Target 1205-1201
SL - 1255
Any close above 1240 is likely to resume the upward trend with resistance at 1250. A close above that confirms the bull run up to 1280. Friday closing could be crucial because if it closes 1240 it is likely to correct up to 1220.
Probability of consolidation is high between 1240-1220 range.
Break of 1220 triggers a end of the current short term bull run with...
As per the observations on Hourly chart, I have noticed three points as follow:
1. Breakout from trending channel
2. Retracement Back to 61.8 Fibs level
3. Bearish Divergence on MACD and RSI
Stop Loss: 1252
Target : 1220
NSE:HDFCBANK
The impulse that started in early February is nearing completion.
We are already seeing signs of RSI divergence on daily charts.
More importantly, it is also completing 5 wave cycle, as seen on this weekly chart.
Most likely scenario is that we will see a final spike to 1260-80 zone followed by an extended downturn.
HDFCBAK to go Up - As long as it holds 1210 Levels.
Results are good.. So today it might drop a bit more, but in a few days, I feel we are going to touch 1250-1260 Levels
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Again I'm not trading this.. I'm just going to watch if my analysis is correct
SL 1209.50 ----***********************
