Indusind Bank post making a low near 1500 has shown a strong reversal on the upside. We have been bullish on this stock and captured the upmove form of the level of 1660. The stock has managed to sustain the rise and is trading near its 3 months high showing outperformance. We used Elliott wave patterns along with other basic techniques to identify this potential trade setup. It becomes important to identify the patterns and derive a trade set-up.
Below is the chart showing detailed analysis published in our research report –“The Financial Waves short term Update.”Wherein we captured a move of 7%.
IndusInd Bank 60 mins chart: (anticipated as on 19th March)
IndusInd Bank 60 mins chart: (happened as on 27th March)
(Below is an extract of write-up taken from our daily report)
In the last week Indusind Bank witnessed a sharp vertical price rally. In the previous trading session price managed to bypass the last week’s high and closed at 1719.
On the daily chart price has managed to break the important red channel and managed sustain above it. We can see that wave y is completed at the low of 1502. Prices retraced more than 50 % of wave W .The daily RSI is at 79 indicating overbought condition, hence price could correct a little and then continue its upward journey towards 1770 levels i.e. 61.8% retracement of wave w.
On the hourly chart we can see prices have shown rise of 220 points from the lows of 1500. Any dips towards the moving average will provide buying opportunity and will also relieve the overbought zone.
In short, we can initiate long positions on dips towards 1680 – 1660 keeping 1600 as stop loss and aiming for a target of 1780 or higher.
Happened: The stock moved precisely as expected and showed dips towards 1660 levels post which it achieved our target of 1780 levels and made a intraday high near1813 levels.
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