Technical Outlook & Trading Strategy:-
The ICICI BANK has seen a sharp fall from a high of Rs 1279 on 5th Nov 2010 to a low of Rs 939.8 on 9th Feb 2011.
Then the stock has retraced more than 50% of the previous fall to a high of Rs 1139 on 15th April 2011.On the weekly chart the stock has formed a Hammer Candlestick Pattern.
We would like to point out that a Hammer candlestick formation is a significant bullish reversal candlestick pattern suggesting more upside for the stock.
The MACD indicator on the daily chart is also in a bullish zone. We recommend traders to buy 50% now and again in the range of Rs 1055 – Rs 1062 levels with a stop loss placed below Rs 1036.4 levels for targets of Rs 1100 – Rs 1125 levels.
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