Bullish Possibility:
Maruti is in strong uptrend since 2009 market crash (2008) and this week this is interesting since this has given break out in the positive direction which is also the primary trend. Last week Maruti opened at 3721 made a low at 3651, made a high at 3833 and ultimately closed at 3816 level which is above the earlier resistance (now turned support) at 3800 as mentioned in my last post,
Quote
In daily time frame, Maruti had a recent correction some times around mid Nov from it's all time high of 4790 and currently trading at 3731, ie almost 1000 points down from it's top and all oscillators (RSI, Stochastic) are indicating highly oversold for this stock. Zooming on it's last 2 months chart we find that 3800 is a solid resistance from where it fall couple of time making this resistance a significant one. Now in coming week if this stock able to float above this resistance level then can move quickly to 4443 approx due to inverse H&S effect.
Unquote
The above view of last week also holds good as long as Maruti does not fall significantly below 3800 levels.
Bearish Possibility:
No change from my last week view.
Quote:
No stock can move in straight line. It eventually falls. Maruti had a long run from 2009 and it's very difficult to interpret at this level whether this stock had topped or not. As a short term trader it's not our job as well. We will trade this with strict stoploss. It stoploss hit we will exit or reverse as per the situation. Trading any failed pattern is also yummy. If Maruti fails to hold 3800 reverse your position and trade the negative side with target much below the HEAD of the inverse H&S pattern. But above 3800 it's always a buy.
Unquote
If you like this post do share it and leave your comment. Any question related to the topic? Feel free to ask.
Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my mater says, Get Rich Slowly and Quietly. Cheers!!
Maruti is in strong uptrend since 2009 market crash (2008) and this week this is interesting since this has given break out in the positive direction which is also the primary trend. Last week Maruti opened at 3721 made a low at 3651, made a high at 3833 and ultimately closed at 3816 level which is above the earlier resistance (now turned support) at 3800 as mentioned in my last post,
Quote
In daily time frame, Maruti had a recent correction some times around mid Nov from it's all time high of 4790 and currently trading at 3731, ie almost 1000 points down from it's top and all oscillators (RSI, Stochastic) are indicating highly oversold for this stock. Zooming on it's last 2 months chart we find that 3800 is a solid resistance from where it fall couple of time making this resistance a significant one. Now in coming week if this stock able to float above this resistance level then can move quickly to 4443 approx due to inverse H&S effect.
Unquote
The above view of last week also holds good as long as Maruti does not fall significantly below 3800 levels.
Bearish Possibility:
No change from my last week view.
Quote:
No stock can move in straight line. It eventually falls. Maruti had a long run from 2009 and it's very difficult to interpret at this level whether this stock had topped or not. As a short term trader it's not our job as well. We will trade this with strict stoploss. It stoploss hit we will exit or reverse as per the situation. Trading any failed pattern is also yummy. If Maruti fails to hold 3800 reverse your position and trade the negative side with target much below the HEAD of the inverse H&S pattern. But above 3800 it's always a buy.
Unquote
If you like this post do share it and leave your comment. Any question related to the topic? Feel free to ask.
Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my mater says, Get Rich Slowly and Quietly. Cheers!!
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