Hello all,
here is a small write up on Coal India. I have analysed 2 timeframes, weekly and Daily. Let's look at observations.
On Weekly Line chart, prices consolidated near downward slopping support line for entire month. Historically prices have bounced decently from the same trendline.
On daily timeframe, interesting setups are noticed ...
Due to month long consolidation, price is forming ascending Triangle (rising triangle) formation, which indicates that every decline is taken as opportunity to add. Resistance zone is 150.
Bollinger Bands (highlighted in blue zone) shows that price failed to break above higher band on 17th April. Similar attempt is done again on 30th April. Price closed near band, but breakout remains pending. Resistance zone is again 150 mark. Bollinger band lower band is at 135, which is coinciding with rising trendline of Ascending triangle.
Ichimoku Cloud (not using entire indicator) zone (red cloud due to span lines positioning) generally works as support and resistance. On daily chart of coal India, Span lines (creating cloud) are acting as resistance, that is coinciding with Bollinger bands Resistance zone and Ascending triangle breakout zone @ 150.
RSI is rising healthily and present reading is 55, which shows decent accumulation of strength.
Putting it all together, Trendline support on weekly chart, Ascending Triangle formation on daily chart, Bollinger band breakout zone and Ichimoku cloud resistance zone, all are coinciding at 150. Presently 150 is acting as strong resistance area. Rising Trendline (moving support) of Ascending triangle and Bollinger Band lower band are showing support zone of 135.
Trade Setup:
Both sided trade can be initiated based on breakout or breakdown. Long above 150 or short below 135 seems the best set up.
(One can even think of selling near resistance zone or buying near support zone. If stop is triggered, one can initiate other side trade).
Thanks & Kind Regards,
- Kunal Rambhia
here is a small write up on Coal India. I have analysed 2 timeframes, weekly and Daily. Let's look at observations.
On Weekly Line chart, prices consolidated near downward slopping support line for entire month. Historically prices have bounced decently from the same trendline.
On daily timeframe, interesting setups are noticed ...
Due to month long consolidation, price is forming ascending Triangle (rising triangle) formation, which indicates that every decline is taken as opportunity to add. Resistance zone is 150.
Bollinger Bands (highlighted in blue zone) shows that price failed to break above higher band on 17th April. Similar attempt is done again on 30th April. Price closed near band, but breakout remains pending. Resistance zone is again 150 mark. Bollinger band lower band is at 135, which is coinciding with rising trendline of Ascending triangle.
Ichimoku Cloud (not using entire indicator) zone (red cloud due to span lines positioning) generally works as support and resistance. On daily chart of coal India, Span lines (creating cloud) are acting as resistance, that is coinciding with Bollinger bands Resistance zone and Ascending triangle breakout zone @ 150.
RSI is rising healthily and present reading is 55, which shows decent accumulation of strength.
Putting it all together, Trendline support on weekly chart, Ascending Triangle formation on daily chart, Bollinger band breakout zone and Ichimoku cloud resistance zone, all are coinciding at 150. Presently 150 is acting as strong resistance area. Rising Trendline (moving support) of Ascending triangle and Bollinger Band lower band are showing support zone of 135.
Trade Setup:
Both sided trade can be initiated based on breakout or breakdown. Long above 150 or short below 135 seems the best set up.
(One can even think of selling near resistance zone or buying near support zone. If stop is triggered, one can initiate other side trade).
Thanks & Kind Regards,
- Kunal Rambhia
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