It's one of the rare cases we see this kind of formation and the strike ratio of this type of formation is really good, it's one of the best performing formations.

The stock opened gap down and from the next day itself the stock has been trading higher than the close of the previous candle. This has been majorly followed till the time we see a doji, which is suggesting a halt in the move which was observed after that the stock has been trading high.

The 50 EMA and a 200 EMA average is equal at this point which is suggesting a change in trend is nearby, but there is also a move which we can play instead of using EMA as a trend indicator, we can use EMA as a Resistance and Support.

If the stock closes above the EMA's there is a good opportunity for buying.

Macd has crossover below 0 and is expected to move above 0, if the stock closes above both the EMA's and the Macd trade above 0 we will get a strong confirmation that the indicator is following the price.

RSI is trading near 50 expect to move higher and it is also following the price move. If we don't see any divergence nearby we can expect RSI to follow the price.

ADVICE : Buy if the stock closes above the EMA's.

Buying Opportunity Ahead

Jul 25 2021

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