Investor Choices

Swing Trade   Lets Look at the M&M finance and try to analyze its behavior. We will apply here Top -Down means we are going to analyze from higher time frame to lower time frame. 1 Month Time frame Look at this 1 months chart. Here we can see that there was 3 wave pattern which was ended by making the TOP of  224.30 after that stock went into correction mode and came near to the low 149.60 but did not break it and start turning up.  Weekly Time Frame Now move to one time frame lower and try to analyze weekly time frame what it is doing. Here we can see a beautiful compression pattern that means if you will see back you will find that it took him 2 weekly candle a fast move to make that high of 224.30 with good volume. But when price came back to the same level volume was drying and took more than 10 candle to cover full move. And now it is making support at 40 RSI. and also 50 SMA. Which is a good sign. Daily Time Frame Now move to one day time frame.  Here we can see stock gave a

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 Bank Nifty ( Head and shoulder Pattern)  A very nice head and shoulder pattern has given a breakout on Friday in BankNifty on 1hourly time frame we can see it very nicely.  Now as per the rule it provides target as equal to the depth of the head and neckline. Which is almost 10% so we can expect a 10% upward move in Bank Nifty.  There might be two consequences: 1. It may directly go towards target where it will be difficult to manage risk( so it is advisable if market open high on Monday avoid the entry) 2. If market pull backs toward neckline of the head and shoulder so that will be nice trade we can enter if it makes support and suits our risk parameter. Thank you.