ITC has risen exponentially in past few years.
However since mid 2013
this stock has been moving in range and has not provided any returns. As per
technical analysis this is called as a consolidation period. Stock has
protected the important pivot support which is in the investors favor. Basic
technical tools like channels, moving averages, RSI, Money flow index is
working well to capture the short as well as medium term trend and to stay
objective. Recently we were able to capture the up move in ITC which was
covered in The Financial Waves Short
ITC Daily chart: (Anticipated in the morning of 31st
ITC 60 mins
research published in the morning of 31st March 2015)
As shown in daily chart, since May 2013 this
stock is moving in range and not showing continuous trend on either side.
However prices have protected the important pivot support level which is a
positive sign over medium term. Investors can hold this stock with the
important risk management of 295 levels.
Money Flow index has been providing important
information. We can see that whenever this indicator arrives at the
support of 30, smarter hands starts to accumulate stock and post that we have
witnessed sharp rally on upside. Along with this RSI has also arrived at the
level of 30. So price action of next few days will be crucial and probability
is higher that prices will move upwards.
As shown in 60 mins chart, in the last trading
session prices bounced back sharply and has broken the small downward
moving channel which suggest that important low may be in place. Close above 50
periods Exponential moving average will further confirm the bullish
possibility. On downside 315 will act as an important support now.
In short, with the support of 315 bias
for ITC is positive and any dips should be utilized as a buying opportunity. On
upside prices can move towards 350 level where 38.2% retracement is placed of
the prior down move.
Happened: in todays trading session ITC touched the
high of 350.40 levels and achieved our mentioned level.
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