15/05/2016 03:23 PM IST
In Debtrades, last week we mentioned that,
For the last couple of weeks Maruti has put on couple of doji signals on weekly chart. Doji signals indicated indecisiveness between bulls and bears and also some times indicate formation of tops. But the good thing is that Maruti still floating above 3800. So till this is trading above 3800 bulls are safe and look for first target at 4177 and next 4340 approx.
Unquote:
Now let's analyze how this stock can trade this week. We will first consider the bullish possibility.
Bullish Possibility:
As can be seen from the above weekly chart, Maruti has put another doji last week indicating indecision between bulls and bears but the good thing is that, Maruti still trading above 7800 and till it is trading above 7800 there is a good chance that this counter can reach up to 4340.
Bearish Possibility:
Below 7800 Maruti can target the lower edge of the consolidation rectangle marked in red in the chart which is at 3600 odd levels.
Summary:
1) Maruti is trading above the consolidation range, 3800-3600.
2) Till Maruti is trading above 3800 can potentially target up to 4340.
3) Maintain a long position with 3800 as the SAR value with 20 points filter.
Final words:
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!!
In Debtrades, last week we mentioned that,
Quote:
For the last couple of weeks Maruti has put on couple of doji signals on weekly chart. Doji signals indicated indecisiveness between bulls and bears and also some times indicate formation of tops. But the good thing is that Maruti still floating above 3800. So till this is trading above 3800 bulls are safe and look for first target at 4177 and next 4340 approx.
Unquote:
Last week Maruti opened at 3830, made a low at 3790, high at 3909.8 and finally closed at 3846. So we are still lagging in momentum in this stock.
Now let's analyze how this stock can trade this week. We will first consider the bullish possibility.
Bullish Possibility:
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| Maruti Weekly Chart |
Bearish Possibility:
Below 7800 Maruti can target the lower edge of the consolidation rectangle marked in red in the chart which is at 3600 odd levels.
Summary:
1) Maruti is trading above the consolidation range, 3800-3600.
2) Till Maruti is trading above 3800 can potentially target up to 4340.
3) Maintain a long position with 3800 as the SAR value with 20 points filter.
Final words:
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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