This is daily chart of MRF on NSE (INDIA) which is trading at 66550. It seems to be good scrip for positional long trade based on following observations:
1. Support zone has been marked on the chart indicating multiple supports /resistances using arrows. Now, the price has come out of this support zone decisively on 2nd Nov 2018 and thus top fibre of support should act as good support for the scrip.
2. Price is now trading above EMA20
3. Next major resistance has been marked on the chart which could be considered as possible Target (73200).
4. RSI (59+) is approaching to indicate possible breakout beyond 60 indicating good momentum.
5. Good momentum can also be witnessed on Bollinger Band where price has gone past upper band for the first time since January 2018
Hence, it could be a good long trade with stop @ 63500 (one ATR below top fibre of support zone) with possible target of 73200 (next major resistance)
Happy trading!!! Kindly share views
1. Support zone has been marked on the chart indicating multiple supports /resistances using arrows. Now, the price has come out of this support zone decisively on 2nd Nov 2018 and thus top fibre of support should act as good support for the scrip.
2. Price is now trading above EMA20
3. Next major resistance has been marked on the chart which could be considered as possible Target (73200).
4. RSI (59+) is approaching to indicate possible breakout beyond 60 indicating good momentum.
5. Good momentum can also be witnessed on Bollinger Band where price has gone past upper band for the first time since January 2018
Hence, it could be a good long trade with stop @ 63500 (one ATR below top fibre of support zone) with possible target of 73200 (next major resistance)
Happy trading!!! Kindly share views