Hero Honda Falling Back after hitting resistance

HERO HONDA Daily NSE Stock Chart Technical Analysis:

Hero Honda is falling again after a few days of rise.

I hope you have been following my newsletter, and were bullish on Hero Honda just when it rose and have made money on this rise.  Also, if you haven't sold HH already if you bought when I recommended it in my newsletter, sell it now to book profits.  (And if you haven't subscribed newsletter but want to, click here).

Market Outlook:

• The price could fall further during the next few days.

Technical Indicators:

• The price reached its resistance level but retraced from there and could not break out.  
• Support is at 1910 and then at 1865.

HERO HONDA Daily NSE Stock Chart Technical Analysis

Hero Honda falling: Support @ 1807, Could make upward correction soon

HERO HONDA Daily NSE Stock Chart Technical Analysis

Hero Honda was seen struggling for support today.  It opened at 1828 and CMP is 1809.95.

Market Outlook:

As analyzed in Monday post, the price is falling since the past 3 days.

Tomorrow also the price could fall but will try to remain near today's close and not fall too deep.

The price fall should slow down now and then the stock could make an upward correction.

Next level of support if the price continues to fall is Rs 1775.

Technical Indicators:

The price fell intraday below its 1807 support but recovered to close above this support line, which is a positive sign.

The price could fall again tomorrow but can rise again soon.

The price has reached the oversold levels which also indicates that this stock could make an upward correction.

Long term view of this stock does not seem positive even if the price makes an upward correction.

HERO HONDA Daily NSE Stock Chart Technical Analysis

Hero Honda Falling: Support between 1807 & 1813

HERO HONDA Daily NSE Stock Chart Technical Analysis

Hero Honda fell today, Open: Rs. 1874, CMP: Rs. 1829.35.

Market Outlook:  

Tomorrow also the price could fall and the market should close between Rs. 1807 and Rs. 1813.

The price should make a small upward correction soon.

Technical Indicators:

The price fell today with good trading activity, and could easily fall tomorrow as well.

There are 2 levels of immediate support to stop the price from falling further: Rs. 1813 followed by Rs. 1807. There are previous swing lows as well as Fibonacci support levels.

If price manages to fall below both these levels, the 3rd support is at Rs. 1775.  And of course, we also have the support trendline below that.

The price is reaching into the oversold levels so it should pick up the rally and move upwards again once it hits the support lines.

There are support and resistance trendlines as visible on the chart.  Any breakouts from these lines will be very significant.  Though this is not expected, keep an eye on any breakouts from these trendlines.

HERO HONDA Daily NSE Stock Chart Technical Analysis

Hero Honda Rises Today, Could Fall Back Soon

Hero Honda Daily NSE Stock Chart Technical Analysis:

Hero Honda is taking Fibonacci levels support and closed at the 61.8% level today after opening at 50%.  In price terms, it closed at Rs 1867.65 after opening at Rs 1853.

Market Outlook:  The price will find resistance near today's close and fall back again the day after.

Technical Indicators:

• The price is trying to take support of the Fibonacci retracements as mentioned above.

• The interest in the stock at this price level seems unsustainable and the price should fall back very soon.  Today's price spurt seems to be an attempt to drive the prices higher but no one in the market seems convinced with today's rate.

Hero Honda Falls as analyzed: Gap Down

Hero Honda Daily NSE Stock Chart Technical Analysis:

In my Friday post, I had analyzed that Hero Honda will fall on Monday and going short with a target of 1800-1820 on market open is a good idea.  

The market today opened at 1841 and fell to 1815 before closing at 1838.  

Market Outlook: The price will fall further tomorrow but the fall won't be as deep as today.  

If you did not exit the short position between 1815 and 1820 today, keep an eye on the price tomorrow and plan to exit for a short term profit.  

Depending on market tomorrow, I might hold on to a small quantity of the stock to sell even further below, if tomorrow I get confirmation about a possible fall on Wednesday.

Technical Indicators:

• Not exactly, but its close to being a dragonfly doji today.  It is not too significant but denotes that tomorrow the slide in price will slow down.  

• Volume has watered down which also shows the price wont crash tomorrow, will only slide down slowly.

• 250 day moving average is a line of support, around 1778 levels.

Hero Honda Moving Averages Coming Together

Wow! And I thought yesterday that the Hero Honda stock price in NSE would close positively today.  I wonder which indicator I missed.

The price fell today owing to weak quarter performance of Hero Honda.

There is a bearish counterattack pattern appearing today and the market has returned to its last day's open, and this is a negative signal.

Interestingly, the 20, 50 and 100 day moving averages have come together today, which means the market is building a consensus on the next price movement.  The 20 day moving average climbs through the 50 day moving average from below, which is a positive signal.

The volume is lower than yesterday, showing that today's price fall does not have the same intensity as yesterday's rise.  This is a positive signal.

We are getting a mix of positive and negative signals, making it difficult to determine the next price movement.

Ideally, if the stock price falls further, it should find support at the 250 day moving average, as the price has not fallen below this level or remained fallen below this level for more than a week since the past 2 years.

I feel the price will fall on Monday market open, bottom out near the 20 day moving average, and rise again. For now, a short position can be entered into with a purchase at 1860, stop at 1930 levels and a target at 1820-1800.

Hero Honda takes support of 250 day moving average

Hero Honda Motors stock price on NSE is currently sideways and closed at Rs. 1907.75 today.

The price has found good support at the Fibonacci 78.6% price level (Rs. 1766.70).  

It has also found support on the 250 day moving average, with whom the price has reconnected after an entire year.

A closer look at today's chart shows a long white candle with strong volume.  Rs 1933 and Rs 1977 are the next two psychological barriers to this price. Indicators don't point to a fall in the price tomorrow and the week should end on a positive note.