Lets’s go long again and make profits once more.
‘No stock is too high to buy nor too low to sell’ – Jesse Lauriston
LivermoreWith the Nifty swinging in a bullish phase and consolidating above levels of 11,320 one can feel the luxurious heat of optimism and traders’, especially investors’ accounts appear verdant with profits ripe to be booked. At this stage, one can ruminate over the quote given above and would begin to search for a fresh opportunity.
Given below is an analysis, once again of Tech Mahindra.
A previous analysis posted on 3rd January gave a BUY call and the target was achieved on 8th January. A channel was identified and now stock can be seen closing above its support zone. However, a strong bullish candlestick setup cannot be observed and a prominent gap up on Monday morning must be a definite lookout for confirmation of going long.
After a gap up longs can be initiated with a definite stop loss of 775 and targets can be 788-792-796. Do keep in mind that a gap down opening would not be confirmation enough to initiate a short. In this alternate scenario, the best approach shall be to now to trade.
Disclaimer: We have provided this information to traders and investors for educational purposes only. It is neither a legal interpretation nor a statement of SEBI policy. Before making any investment or trading decision it is advised to consult with your financial advisor.