While trading the market it is important to understand the behavior of the market. We gave sell call in Lupin by using simple technical tools in confluence to derive a trading strategy.
Look at the below chart of Lupin published in the equity research report on 22nd February morning before markets opened – The Financial Waves short term update
Lupin 60 mins chart: (Anticipated as on 22nd February 2021)
Lupin 60 mins chart:(Happened as of now)
Lupin tanked for the third consecutive day. Stock ends with a loss of 2.62% in the previous session and closed near 1021.70 levels.
As shown on the daily chart, the fall witnessed since the past three sessions has been sharp and steep. Stock is now quoting below its important support and further break of its previous day low might push the prices further lower. Prices has been constantly forming bearish candles and protecting the high of prior day. This keeps the daily bias negative as long as the previous high is protected on closing basis.
As shown on hourly chart, Price gave breakout of its channel support which is a sign of negative movement in stock for coming sessions. RSI indicator is placed below 30 levels hence the possibility of a minor consolidation cannot be ruled out which can be used as selling opportunity. Price is trading below 50-day exponential moving average which suggests that one should be in the direction of the ongoing trend as far as this average is protected.
In a nutshell the trend for Lupin is sideways to negative. One can use pull back for selling opportunity for a level towards 990 or lower side as long as 1060 hold on the upside.
Happened: The stock performed precisely as expected recently on 22nd February 2021 the stock has made low near 985 levels.
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