July 10th Report
- Gap Support at 16890 levels. It is extremely important for the level to hold up.
- The long term trend remain bearish, with the market perhaps consolidating before a move down.
- 16,000 levels remain a crucial level to watch out for. Any break of that level will be disastrous for the market. At the moment it is a very low probability that the market breaks below the 16,000 levels.
- The Index is approaching an important gap support level at 11,430 zones
- There is plenty of over-head resistance and that points to limited upside.
- With a closely bound support and resistance zones we expect the market to remain range-bound for the next couple of days.
- Stock is at a strong support zone.
- Bullish Engulfing Candle-stick formation
- Nearest meaningful resistance is 5% away.
Keeping the above in mind the stock offers a good risk-reward set-up in my opinion.(Not an Investment Recommendation)
- RSI over-sold and bouncing up
- Piercing line candle-stick pattern was formed a day ago
- Large volumes on the day prior to piercing line points to a selling climax day
- Falling Wedge
- Nearest meaningful resistance at 102