RBLBANK gains despite Banknifty tanks. Learn how to understand certain indicators which would help you to build confidence on up move.
Combination of 3 trend indicators is amazing technique applied on a chart to understand why there was a rise and is this rise sustainable.
RBLBANK FUT 5 mins chart:
We have shown 5 mins chart of RBLBANK, indicators/ techniques are mentioned below and how to use these studies altogether to understand the overall trend.
RSI: The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. Many people use RSI to understand overbought and oversold state of market but during strong trending moves prices can remain in strong overbought region or oversold region for extended period of time. It therefore becomes necessary to see if market is in a trending mode or a trading range. Here in above chart the RSI is approaching towards overbought region so some consolidation cannot be overruled to sustain higher.
Moving Average: 30 period Moving Average is acting as a brilliant support line and it has provided support at regular intervals. This suggest that one should be in the direction of the on-going trend as far as this line is protected and any pullback towards the same should be utilized as buying opportunity.
Ichimoku Cloud: Ichimoku cloud is an indicator within technical analysis that incorporates multiple methods and forms a very strong basis to identify the trend, momentum, reversals and much more. In the above chart as prices moved above the cloud there was an indication of buying.
RBLBANK FUT BUY ABOVE 246 SL 244.8 TGT1 247 TGT2 247.9 GIVEN TIME 11:34
RBLBANK FUT BUY CALL GIVEN TGT1 ACHIEVED AT 247 11:52
RBLBANK FUT BUY CALL GIVEN TGT2 ACHIEVED AT 247.9 12:00