LIC Housing Finance Looks Strong with Convergence of 6 Support Lines

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:

1. S1 (1 Month Old Support)
2. S2 (3 Month Old Resistance Turned Support)
3. S3 (4 Months Old Support) 
4. S4 (3+ Years Old Support - Black Line) 
5. 50-Day SMA (Red Line) 
6. 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.

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LIC Housing Finance Daily Chart Technical Analysis

LIC Housing Finance: Short Term Upward Correction Possible

LIC HOUSING FINANCE Daily NSE Chart Technical Analysis:

LIC Housing is sideways after a big fall (which was triggered by LIC Hsg's name coming up for a bribe-for-loan scam).

Close & CMP is 915.50.

Market Outlook:

• The price is set to make a correction after the big fall.  If the market climbs on Monday, there might be an opportunity to go long with a stop loss at 870 and a targets at 1020 and 1100.

Technical Indicators:

• The weekly chart is showing building up of momentum which means a natural correction could be occurring.
• Don't hang around in this stock, there is no visibility of long-term revival as of now.  I have my doubts and this stock could lose a lot of value once the scam unravels.  Trade this one for short term profit only.

LIC HOUSING FINANCE Daily NSE Chart Technical Analysis