Wednesday, May 16, 2012

Cipla - bullish possibilities

The daily chart for CIPLA shows a bullish nead and shoulder under process. The pattern gets confirmed if prices close above 330 neckline. There must be many other ways to trade this setup - in anticipation of breakout, on a dip after the breakout, with options, and so on.

Here is the chart:


Given the down trend in the Nifty, I would wait for a close above 330, a rally,  then a pullback to take a long position. But, I am sure that many other strategies are possible. I request readers to provide their own strategies to trade the setup in the comments section.

4 comments:

Abhishek said...

considering weak market condition it seems difficult for the stock to cross and hold 330 levels

if at all market corrects more from this level stock may see the levels of 315 (considering 309 support holds)

and on the next bull run will face resistance at 330 levels and crossing there upon will witness 341 349 levels

Rajveer said...

Best Trade will come after a close above 330, no doubt. But, it is still a long candidate since the Marubozu white candle is preceded by a Hammer with a low of 312. Since, SL is very near. We can go long.

Rajveer said...

The best trade will come after close above 330, no doubt. Still we can buy at current price since, whilte marobozu candle is preceded by a hammer with a low of 312. Very bullish pattern. Go Long.

Research said...

I think there is no such perfect formation of bullish head and shoulder. If we look at neckline for which we are waiting to break is not perfect as it is displayed in below NSYE composite bearish head and shoulder pattern. But yes if prices get succeed to close above 330 then it will be a close above 50% fibbonacci retracement for 274-384 and we can expect upmove . I am a learner in technical analysis field and need guidance of all big brothers here and Sukhani Sir is the Father of Technical Analysis in india. He has contributed a lot in this field to make aware in the field of analysis of share market.