Top 2 Short Term Trading Picks with ‘Bullish’ Chart Patterns No ratings yet.

Trading Strategy

(1) Reliance Industries

The stock has recently been showing bullish momentum after a period of retracement. It has formed a Bullish Cup with Handle chart pattern on weekly charts

Cup with handle is a pattern which indicate temporary halt in the underlying momentum/trend of the stock. (Learn more about Chart Patterns in our Basic Technical analysis Module. Check this link for details).
An eventual breakout from the trading range indicate a fresh momentum building up, which is seen in case of Reliance, also . The stock has already broken out of its trading range and looks appropriately twined with the underlying indices too for an up move.

A rising OBV indicator, further indicates the the strength of volume in the counter.

My outlook for the stock in Short Term & Medium Term is Positive.

Technical Pattern: Cup with Handle+OBV

Action
Trigger Price
Stop Loss
Target 1
Target 2
BUY >1335 1320 1346 1364

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(2) Havells India

The stock has been trading in a positive price channel on weekly charts giving an indication of the bulls thriving in the counter.

On Daily Charts also, the stock has formed a bullish chart pattern, Ascending Triangle and the pattern has already given a breakout from 750 odd levels, indicating a fresh bullish thrust. (Learn more about Ascending Triangle Chart Pattern in our Advanced Technical analysis Module. Check this link for details).

Apart from the bullish chart pattern, momentum indicator STS is also trading in overbought zone indicating strength in the counter.This bullish momentum may continue in the counter in immediate term.

My outlook for the stock in Short Term is Positive

Technical Pattern: Ascending Triangle+ STS

Action
Trigger Price
Stop Loss
Target 1
Target 2
BUY >770 760 782 796

 

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The above analysis is based on closing prices as on 12th March, 2019 & Trading levels mentioned in the post are valid upto 1 month

Disclaimer: All views expressed in this site are for reference only. Readers must consult their own investment adviser  before taking any investment/trading decision. We hold no financial liability to any user on account of use of information provided on this website.

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Author: Traders' Chowk

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