Bajaj Finance Finds Short term Price Channel Support

Bajaj Finance stock on NSE fell below its long term support line 4 days ago, but has found support on the horizontal line.  I have talked about all the lines in my previous posts on Bajaj Finance, pl refer to them for this thread of discussion.

We will wait and watch before taking any position, but it does seems like the stock will fall further based on the negative candlestick formations and some other indicators.

Chart Source: www.moneycontrol.com

Bajaj Finance Breaks Support Trendline

Bajaj Finance stock on NSE has broken its long-term support trendline instead of breaking its short term upper price channel, as was discussed in yesterday's post .

There is still another level in the horizontal channel to be achieved.

If that is breached, the next stop could be at the lower diagonal trendline. The other indicators are also pointing at further fall in price.

I'm willing to go short tomorrow, if the price falls and remains below the lower horizontal line.

Chart Source: in.reuters.com

Bajaj Finance Triangle Approaching

Bajaj Finance stock on NSE had climbed out of resistance on 7-Sep, and has been choppy since.  

The earlier resistance is acting as support now, as is visible. 

There is another horizontal price channel which has formed since last 2-3 weeks.  The diagonal long term support and the upper limit horizontal price channel are about to co-incide in a day or two.  

The stock has two options now - Either break its long term line of resistance turned support, or will climb out of its short term horizontal resistance.  

If Bajaj Finance breaches long term support, there is another parallel support line way below.  If Bajaj Finance breaches the horizontal resistance, it could rise further aided by the support line.

I'll wait n watch next couple of days, and then take a position.

Chart Source: www.moneycontrol.com