VEDL detail analysis

10 de nov. de 2023

VEDL is overall in Bearish Trend on higher timeframe.
See the below chart for EMA and RSI correlation.


EMA:-
- Its below Daily 200 EMA (White Line).
- Its below Weekly 200 EMA (Green Line).
- Both these Daily & Weekly EMA's may now act as Resistance.
- So i am expecting price to again reverse downside from 256 level.
- Price is above Monthly 200 EMA (Red Line).
- I am expecting price to fall back to this Red line and reverse from here @185-190 level (Support Based Trade).
- Expecting an upside only if its breakout above 256 and retest 256 level as support (Breakout Trade).

RSI:-
- Daily RSI (White Line) bounced from oversold zone (RSI 30) and now above 65+ level.
- Weekly RSI (Green Line) bounced from oversold zone (RSI 30) and now near 46+ level.
- Monthy RSI (Red Line) bounced from support (RSI 40) and now near 45+ level.
- So overall if i see Daily RSI may reverse from 70+, Weekly & Monthly RSI may reverse from 50.
- Now correlate that price rising from current price to 256 may lead to Daily RSI hitting 70 and Weekly & Monthly RSI hitting 50. A good setup for reversal downside. So 256 may act as Resistance and Major Breakout level.

TRACK 1 - shows the Breakout trade above (Skyblue Track).
TRACK 2 - shows the Support Based trade near 185-190 (Yellow Track).

Support & Resistance:-
- Major support level is at 209-210 from where VEDL price has bounced back.
- Supertrend Red colour line shows resistance at 256-257 level.
- Resistance Levels are 246 - 282 - 317 - 357 - 397 - 440.
- Support Levels are 232 - 209 - 187.
- Red Trendline Resistance marked is the make or break for price.
- If successfull Breakout above this Red Trendline with retest done and volume supporting Breakout (Buy).
- If rejection from this Red Trendline the price may fall to 185-190 Support zone (Buy).

So as per my analysis:-
It took support from major support level.
But if you correlate it rose and fall back again and again from resistance (in downtrend).
as per my analysis its a limited bounce and expected to fall back again.
Wait for Breakout or fall to Monthly 200 EMA for long posn or accumulation.

For Positional or Long Term
Buy 185-190
Stoploss 158
Targets 242 - 282 - 317 - 357 - 397 - 440.

For Swing
Buy above 249 or above 257
Stoploss 228
Targets 270 - 282 - 317.

This idea is for Educational purpose and paper trading only. Please consult your financial advisor before investing or making any position. We are not SEBI registered.

Happy Trading :-)