Monday, June 2, 2014

Tata Steel: Do a Long legged doji on weekly charts is a sign , of temoparily loss of upside momentum?




  1. 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.
  2. 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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