1 ‘Buy’ and 1 ‘Sell’ Short Term picks with Bullish & Bearish Chart Patterns 5/5 (1)

Swing Trading

Date Posted-06/01/2019

(1) HCL Tech:

Daily Charts of HCL Tech display a distribution pattern which resembles an Head and Shoulders Pattern. Head and Shoulders Pattern is a bearish reversal pattern which signifies strong players off loading the share at regular intervals.

In a pictorial pattern, it has has two ‘Shoulders’ and a ‘Head’ in place. In this case,The Head of the pattern rests at 1100/- odd levels and neckline at 940-950 odd levels. The stock has already given a break down from its neckline and is gearing towards lower levels in short as well as medium term time frame.

Short term traders shall focus on shorting this counter. Fresh shorts may be initiated below the immediate support of 925/-.

Technical pattern: Head & Shoulder -Daily

Action
Trigger Price
Stop Loss
Target 1
Target 2
SELL <924.70 935 912 895

(2) Torrent Pharma:

In spite of weakness in the underlying index, the stock has managed to give positive returns for last few weeks. It is also nearing a crucial resistance placed at 1827/- which also coincides with its breakout from the current consolidation pattern.

It is also trading below major support levels of 50 , 150 DEMA and has given a bullish crossover of the said EMAs. The buying momentum in stock may continue if the stock manages to close above the said resistance in the coming week.

Technical pattern: Bullish Crossover

Action
Trigger Price
Stop Loss
Target 1
Target 2
BUY >1827.40 1800 1860 1890

*The analysis is based on closing prices as per 4th January, 2019 and Trading levels mentioned in the above post are valid for next 30 trading sessions

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Author: Traders' Chowk

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