BULLISH VIEW
CANDLESTICK PATTERNS:
- Tweezers Bottom appeared on 24th Feb and on 05th March, 2014, after a lengthy downtrend, forming a bottom at 281.9 and giving breakout with a long white candle.
- Bullish Harami/Inside candle appeared on 25th Feb, 06th March.
- Spinning top appeared at support with high volume on 25th march, 2014.
CONTINUATION PATTERN:
- A bullish flag pattern is appeared on the daily charts, if the pattern completes , stock may test levels of 318-320.
- However a suspicion for bullish move in flag consolidation is that, out of 11 candle's, 7 are black candles and 3 are white candle and 1 is doji, thus position should be made cautiously.
- Seems like stock has made at bottom at 281.90.
- Breakout from Downward sloping trend-line of 4 month will come above 295.
- Stop loss is placed at 280.
- Risk reward ratio of 2:1 is favorable.
INDICATORS:
- RSI :RSI formed double bottoming pattern and showing a positive divergence at same price and continues to turning up.
- STOCHASTIC : very close to turning up.
- MACD: It is turning-up, and histogram bars are also turning up.
- BOLLINGER BANDS : They are wide, and flattening indicating a base formation.
- 20 SMA : Stock has been trying to take support on 20 day moving average.
- VOLUME : volume is higher when prices close higher from previous close, and vice-versa.
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