Automotive AxleNSE:AUTOAXLES Weekly chart showing it made bottom near averages and also done some of consolidation near support zone. Fundamentally strong also.
AUTOAXLES trade ideas
Head & Shoulder pattern in Auto Axles. Auto Axles has been corrected from 2449 to 1860 by forming Lower High and Lower Lows. Price has been reverted from supply zone (1730 - 1800) on weekly time frame. It has formed higher high recently showing possibility of trend reversal and has also formed Head & Shoulder pattern on daily time frame and current price is near to neck line of H&S pattern, Having possibility for uptrend move. Share is trading below 200 D SMA.
CMP - 1866
RSI - 51
Entry price - 1885
Target price - 2070 (around 10%)
SL - 1790 (5%)
Disclaimer - This is for education purpose only. I am not a SEBI registered analyst. Take advise from your financial advisor before investing.
Analysis of AUTOAXLES:Support on Weekly Chart:
The weekly chart for AUTOAXLES indicates a bullish sign as the candle has taken support on the rising trendline. This suggests that there is buying interest around this level.
Pin Bar Formation:
The pin bar formation on the rising trendline is a bullish candlestick pattern. It shows that despite some selling pressure during the period, buyers were able to push the price back up, indicating potential upward momentum.
RSI Breakout on Daily Chart:
On the daily timeframe, the Relative Strength Index (RSI) is showing a breakout. This could imply increasing buying strength and potential for the stock to move higher.
Proposed Trade Strategy:
Entry: Consider entering a long position at the current market price (CMP) of 2202, leveraging the support on the rising trendline and the bullish pin bar formation.
Stop Loss (SL): Implement a stop loss at 2040 to manage risk and protect against unexpected adverse price movements.
Target: Set a target at 2390, based on the assumption that the stock may experience a positive move, as suggested by the technical analysis.
Conclusion:
The technical analysis suggests a potential bullish opportunity for AUTOAXLES, with support found on the rising trendline, a bullish pin bar formation, and an RSI breakout. However, it's essential to conduct additional research, consider broader market conditions, and apply risk management principles before making any trading decisions.
As with any investment, there are risks involved, and it's advisable to seek guidance from a financial advisor or conduct thorough research based on your risk tolerance and investment objectives.
Automotive Axles: Potential Reversal in Prices and Breakout OppoThe price action in Automotive Axles suggests a potential reversal from the current levels. The prices have already traced back to the 113%-127% Fibonacci zone and demonstrated a bounce back from the 113% retracement zone of the last upward swing. Additionally, the stock is on the verge of breaking out of the consolidation zone, which ranges from 2180 to 2277. The MACD crossover is also indicating a positive move for this counter. As a result, this stock is considered a potential buy at the current market price (CMP) of 2248, with a stop-loss (SL) set at 2097 (SL condition: candle on the daily chart must be closed below 2097). The target for this trade is set at the range of 2766 to 2840.
AUTOAXLES - Long with 7 to 8% ROIAscending parallel channel and Head & Shoulder pattern in hourly time frame
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Disc - Am not a SEBI registered. Please do your own analyses before taking position. This post is only for educational purposes and not a trading recommendation.
