ICICI walked sideways today after a big gap-up yesterday.
The market made a double top at today's high near 1246.7. This is also the same level where the stock faced consolidation and made double tops just before the 2008 recession began.
Market Outlook: Breaking above 1250 will be a landmark for ICICI Bank, there is high resistance to breaking this level.
Tomorrow will be another sideways day, unless there is some sudden effect of the bank repo rate announcement by the RBI, in which case the rate will fall and find support at between 1170 and 1185.
If the price does not fall tomorrow, it'll fall the day after.
Technical Indicators:
Spinning Top candlestick portrays indecisiveness in the market. People are waiting for something to happen.
The price is sailing well into the oversold levels.
what to do with this information.Suggest the possible course of action if you really want to help.
ReplyDeleteDear Ranajee,
ReplyDeleteYour suggestion is well-taken, I'll try to incorporate it in my future analysis.
But somedays, like on this ICICI chart, there are no clear buy-sell signals. Usually on such days we need to wait for confirmation on the next day.
For eg. here, we need to keep an eye on the price movement and watch if it breaks the 1250 resistance. If this happens, there might be a buy signal and I'll upload that analysis on that day.
Alternately if it falls, it should not go below 1170. If this level is broken, there could be a signal to go short based on confirmation from other indicators.
This chart tells a trader/investor that today is a day of indecision and we need to wait for the next day/s to get a signal of what bet to place next.
I hope I could make my analysis clearer with this explanation. Feel free to keep sharing your thoughts, it inspires me to keep writing and improve with