Monday, November 18, 2013

Is IDEA Cellular ready for an uptrend(Technical analysis Mumbai, India trading)?

Market isn't looking good, when I call market it means Nifty. But there are some stocks which is showing short term downtrend has completed & among them we think IDEA is good bet for short to midterm.

I have uploaded day chart of IDEA here, from it we can guess IDEA has started its rally from level 122 on 26th April 2013. & made high at 188 on 15th Oct 2013. It this rally it has short term downtrend too which is very much oblivious in any long term rally.

Recent short term downtrend started at 188 & ends near 160 that what I guess because I find some reversal signals here.Let’s discuss about it.

1. We can get clear picture of breaking of downtrend line by viewing day chart of IDEA, here we can see more than 5 times this trendline has touched its price candles.


2. 14 day RSI is bouncing back from its most strong support level 35. It is also showing divergence with price which is good sign for next bull run.


3. IDEA is above of all major moving averages like 20 EMA, 50 EMA & 200 EMA, it has climbed over  20 EMA & 50 EMA in last trading session.


4. Volumes are encouraging for bull run, in recent time when IDEA was in downtrend volumes were less when it was falling & volumes are high from last two trading sessions when IDEA showing some reversal in trend. 


5. One more indicator of volume is OBV(On Balance Volume) which shows how much volumes are high when stock is positive for a respective day. OBV is in highest in reading in past one year which I think very good for bull run.


After seeing all that I guess IDEA will going to touch 188 level again in coming few days.
If somebody is long in IDEA I suggest Stop Loss is 165.


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