LIC Housing Finance Daily Chart Technical Analysis
LIC Housing Finance looks strong to take a long-position (buy).
Why?
When you see the chart I have put up, it looks complicated and cluttered. I avoid such clutter on the charts, but this time the clutter is there for a purpose. Read further to know why.
LIC Housing Finance has fallen since making a Double Top in May-June 2014.
Currently, it is showing strength as there is a rare confluence of 6 different support lines. I have marked them S1-S4 for convenience, and changed the colour / format of 2 addl. support lines. They are as follows:
- S1 (1 Month Old Support)
- S2 (3 Month Old Resistance Turned Support)
- S3 (4 Months Old Support)
- S4 (3+ Years Old Support - Black Line)
- 50-Day SMA (Red Line)
- 23.6% Fibonacci Retracement (Dotted Line)
Moreover, the RSI is in the 90+ 'very strong' zone.
Candlestick of the day is Dragonfly Doji, also a reversal pattern indicator.
The next lines of Resistance this share should encounter as it rises ahead... are 336 and 350.
Never trade without a Stop Loss, in this case the SL can be few ticks below S3 (prob @303).
Feel free to comment with your views/questions & I'll be happy to respond.
LIC Housing Finance Daily Chart Technical Analysis
