CHOLAMANDALAM INVESTMENT

13 thg 6, 2022

This stock has broken down support trend line on daily chart along with good intensity of volume.
Stock is possibly forming a bearish head and shoulder pattern and currently, the neckline is at 603. close below 603 will confirm a head and shoulders breakdown which may the open the gates of 482 levels.
Also trend indicators like macd, rsi, rk momentum, rk mass psychological cloud, dmi and adx all are supporting same bearish bias, which increases our confidence to go short in this stock. Price is now trading below 20DMA and also below lower bollinger band which increases our negative bias as a momentum fall expected. The elliot wave structure suggests that the short to medium term uptrend has reversed because wave A was possibly a five wave decline, and corrective pullback wave B looks complete and now possibly wave C is unfolding. RK's momentum also given a sell signal.
If wave C is going to equal to wave A then 562 is minimum to go for, and if it goes 161.8% of wave A then we can see 482 levels ( head and shoulder pattern's size )

Breakdown with a good intensity of volume


Price also broken 20DMA and now trading below lower Bollinger Band


macd negative crossover on daily also below zero line


macd already running negative on weekly chart


RK's stop line along with mass psychological cloud suggesting to go short


RK's momentum sell activated on daily chart


rsi on daily downtick and below 40


dmi adx also negative on daily chart



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Disclaimer.
I am not sebi registered analyst.
My studies are for educational purpose only.
Please Consult your financial advisor before trading or investing.
I am not responsible for any kinds of your profits and your losses.