This is daily chart of ESCORTS on NSE (INDIA). After substantial fall in price from 1017 to 541, it is showing reversal and could be a good long trade based on following observations:
1. It is reversing after testing key supports which are shown by arrows on the chart. It is a kind of triple bottom.
2. OI built is also observed in futures contract of current month.
3. Besides price action as mentioned in preceding point no. 1, there is clear bullish divergence as seen on RSI which has been marked on the chart.
There is a strong support zone in a range of 540 to 550 and hence it could be a good investment idea.
Kindly opine so that we all get benefitted through cross learning.
1. It is reversing after testing key supports which are shown by arrows on the chart. It is a kind of triple bottom.
2. OI built is also observed in futures contract of current month.
3. Besides price action as mentioned in preceding point no. 1, there is clear bullish divergence as seen on RSI which has been marked on the chart.
There is a strong support zone in a range of 540 to 550 and hence it could be a good investment idea.
Kindly opine so that we all get benefitted through cross learning.