HDFC AMC- Observation

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 Swing Trade.

Lets Look at the HDFC AMC chart and try to analyze its behavior. We will apply here 2 ways analysis means on one side we will look for price action and on second side we will look for indicators.

Price Action:

If we see the line chart there is "Flag and Pennant" pattern one of the most powerful pattern in technical analysis. We can see that price exactly respect the 50 Fibonacci ratio which is a very good ratio (where pullbacks are retested) and move.

If you see it gave good a breakout of pennant pattern with good volume. 

Now let us switch to candlesticks to get more 3D kind of view.

What indicator tells?


If you see the chart here you will find that there was squeeze and it broke out that means its volatility is increasing. Also if you see that there is RSI above 60 which indicates the momentum or speed. Also there is MACD crossover which also generates a buy signal. So from both of the side stock is looking nice for swing trading.

Target

Now the question is how do we decide the targets. 


So if you se the above image you will find that it takes the stock 112 days to form that pole and total move is 1272 Rs. So theoretically it gives the same return 1272 Rs within half of the time 56 days. see the image bellow.
 

Target: 3,970
Stop Loss: 2,800
CMP : 2,976
Risk to Reward. 1:5 



 



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