Tata Steel: Do a Long legged doji on weekly charts is a sign , of temoparily loss of upside momentum?
- A long legged doji is seen on the weekly chart of the stock at its previous top resistance level of 500, signalling bulls and bears are at equilibrium.
- This doji is important to see , because it appears at resistance zone, more importantly on weekly chart and a minor reversal may happen.
- Will such doji candle lead a pull back to test the broken neckline, and validate the breakout by bouncing back in the direction of the breakout.
- Or It will not give pullback and will continue the upside momentum/move to further break the resistance level of 500, the stock has been seeing from past 7 to 10 sessions
- For short trades, stop loss will be placed above the high of the doji, and short will confirmed, when price closes under the low of doji.
- Longs will be made, if prices succeeds to close above the high of the doji, level of 500 will be crucial for the stock to cross.
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