Hello All,
here is a small write up on sail. I have analysed two timeframes. Let's look at observations.
Sail started falling right from 100 odd zone & counter is constantly making lower tops lower bottoms on broader formation.
On weekly chart, by connecting tops and bottoms, falling wedge is seen. Marked 5 points on wedge are not in context of any wave counts. They are just depicting number of touch points.
RSI is showing positive divergence in extremely oversold territory first time since 2015, highlighting emergence of buying interest.
On daily chart, multiple observations are seen. After touching support line of weekly time frame (which is forming wedge), stock is forming higher tops and higher bottoms.
Inverse Head and Shoulder formation is seen. Neckline breakout came on 29th April with decent volume. Retesting of breakout happened yesterday (6th May). This retesting phase has no major volume, which is considered positive.
Doji (hammer) is seen on daily chart, bottom of candle being on neckline itself.
Bollinger Band: higher band breakout on closing basis came on 30th April (right on next day of neckline breakout). Median line is coinciding with neckline, which is strong support zone for time-being. Indicator is still supporting bullish formation.
Fibonacci Extension is applied to judge probable target. Extension is highlighted only till 161.8% of first rising wave.
Putting it all together, falling wedge support line with positive RSI divergence in extremely oversold territory of weekly chart and inverse head and shoulder formation with Bollinger band confirmation alongside supportive candlestick formations are all supporting bullish set up.
Trading set up: One bullish candle above median line of Bollinger band on daily chart can confirm trend continuation and bullish trade can be initiated with swing low as initial stop and target being levels highlighted under fibonacci extensions and Weekly resistance line of falling wedge.
- Kunal Rambhia
here is a small write up on sail. I have analysed two timeframes. Let's look at observations.
Sail started falling right from 100 odd zone & counter is constantly making lower tops lower bottoms on broader formation.
On weekly chart, by connecting tops and bottoms, falling wedge is seen. Marked 5 points on wedge are not in context of any wave counts. They are just depicting number of touch points.
RSI is showing positive divergence in extremely oversold territory first time since 2015, highlighting emergence of buying interest.
On daily chart, multiple observations are seen. After touching support line of weekly time frame (which is forming wedge), stock is forming higher tops and higher bottoms.
Inverse Head and Shoulder formation is seen. Neckline breakout came on 29th April with decent volume. Retesting of breakout happened yesterday (6th May). This retesting phase has no major volume, which is considered positive.
Doji (hammer) is seen on daily chart, bottom of candle being on neckline itself.
Bollinger Band: higher band breakout on closing basis came on 30th April (right on next day of neckline breakout). Median line is coinciding with neckline, which is strong support zone for time-being. Indicator is still supporting bullish formation.
Fibonacci Extension is applied to judge probable target. Extension is highlighted only till 161.8% of first rising wave.
Putting it all together, falling wedge support line with positive RSI divergence in extremely oversold territory of weekly chart and inverse head and shoulder formation with Bollinger band confirmation alongside supportive candlestick formations are all supporting bullish set up.
Trading set up: One bullish candle above median line of Bollinger band on daily chart can confirm trend continuation and bullish trade can be initiated with swing low as initial stop and target being levels highlighted under fibonacci extensions and Weekly resistance line of falling wedge.
- Kunal Rambhia
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