Inverted Head & Shoulder Breakout In Amara Raja Batteries

Friends, as we know candlestick analysis is a very simple and sweet technique to predict the future price action. However, we have to keep it simple. We have found one more stock chart based on a weekly time frame i.e. Amara Raja Batteries. We have missed buy opportunity here but stock is having good strength of the more up move. Before this rally, we are waiting for a pullback and we can long near support to maintain the risk-reward ratio.

Technical Analysis of AMARAJABAT: In the below weekly chart, the stock has completed the Inverted Head & Shoulder chart pattern in last to last week and given breakout in the same week. In next week the stock has shown small pullback and given bounce back from neckline support. The last week's closing was near resistance i.e. around 806 and now we are expecting correction till next support i.e. 785. Currently, the market in the correction mode so there are more chances of 785.

Daily Time Frame: We can see a clear scenario on the daily chart. The current trend is Higher-High & Higher-Low and stock is ready for next higher-low. On the last trading day, the stock has made Spinning Top near resistance i.e. 50% indication of correction. On the daily chart, the previous higher top is around 785 that means it is the strong support area. If a stock will not be sustained near support level then the next level is 766-765.

 
Suppose a stock is cross its resistance and close above the same then the next resistances are 730, and 750.

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Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
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