Waves and inverted triangle in GAIL
The public sector stocks are always an attractive pick. But with a great technical setup, it can be a good buy choice. The below is the analysis for GAIL India.
1. The trend formed is not exactly a wedge, it is like an inverted triangle. The high points were touched 4 times, thus establishing the upper resistance and rise in trend. Similarly there were higher-lows formation in the support zone. Establishing a bullish pattern.
2. The price movements resemble an Elliot's wave (within the inverted triangle) but then, they have to be tested for retracement but the waves are strong and clear enough. These waves are the price swings over the periods of time. The next upswing is expected to touch 180.
3. There is a gradual decrease in average volume, so an upward breakout is expected. There were similar volume-breakouts previously.
4. From High 3 to High 4 in price movement, we see that the momentum indicator has slowed down, signaling a divergence. And as the MACS divergence pointed, there was a sharp decrease in price. Now the EMA has crossed the signal line, so it can be the time for the next up-move. As, the price is now at the support level.
If the trend and waves keep the move going, we can see a good bullish move up. (PS. This is not an investment advice. Do your own due diligence before investing in any company)
1. The trend formed is not exactly a wedge, it is like an inverted triangle. The high points were touched 4 times, thus establishing the upper resistance and rise in trend. Similarly there were higher-lows formation in the support zone. Establishing a bullish pattern.
2. The price movements resemble an Elliot's wave (within the inverted triangle) but then, they have to be tested for retracement but the waves are strong and clear enough. These waves are the price swings over the periods of time. The next upswing is expected to touch 180.
3. There is a gradual decrease in average volume, so an upward breakout is expected. There were similar volume-breakouts previously.
4. From High 3 to High 4 in price movement, we see that the momentum indicator has slowed down, signaling a divergence. And as the MACS divergence pointed, there was a sharp decrease in price. Now the EMA has crossed the signal line, so it can be the time for the next up-move. As, the price is now at the support level.
If the trend and waves keep the move going, we can see a good bullish move up. (PS. This is not an investment advice. Do your own due diligence before investing in any company)
Note
From 14th September to 11th November, we see that a head and shoulder pattern has formed. There are high chances for the stock to break the support and go down to the level of 141. Might be a good time to go short. (Do your own due diligence before taking any position in a stock. This is just an observation and not a trade advise.)
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.