Canara Bank
CMP 305
Well ,this is also showing intital signs of starting its final leg of its rally from Covid -lows. A trading opportunity as a positional (swing) trade.
It seems to be starting v of its 5th leg.
That is the final upside in this wave and after that wave 1 would be over and a lager corrrection in wave 2 will start.( that is why it is not an investment-level-price but a trading type entry)
And it is true in most of the PSUs banks, we might be in last leg of rally ( if that happens). If these set-ups work out, if one thinks about fresh investment at this level, better to exit after making some gains.
If it works out, it can touch minimum 400 ( v=i)
Daily Macd is in buying mode, there is a breakout on weekly RSI.Volume was good ( not great)
For further confirmation :
a) It should cross and close above 20 WEMA in coming 2-3 weekends
b) 341 is the next resitance level (red line)
c) Weekly MACD should turn to buy.
If we were investing in this stock , we would take first position now and keep on adding on further confirmations. Our stop-loss level would be at 270 ,
That means, a risk of losing INR 35 rupees and upside potential of INR 100 ie RR of 1:3 .
Disclaimer – Not invested.
This post is just an effort for learning few methods of price-patterns. Views are personal. No buy/sell recommendations. These are probability study methods and chances of success/failure depend upon various factors
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