ITC has had a recent de-merger which let to a price decline of more than 5% last week. However the stock was already in a retracement phase as seen on weekly timeframe and it went down all the way to 430 rupees which was the 71.8% retracement level.The current BB range is 400 to 500 which is a 20-25% volatility range in the 3 Standard Deviations. The price is almost in middle of it. It is above the 21 EMA which serves as the basis.
The RSI is above 50 and just above the MA.
Anything can happen. It can fall down all the way to 400 or it can shoot up all the way to 500 in just a couple of days.
I have a buy position already but I need to be cautious and continuously monitor it as the volatility is high.
It would be better to monitor it on an hourly basis and focus on the RSI Channel.
Once its broken, We can move to a daily time frame and make hold vs exit decision.
Note
~ Trading Idea by Dr. Sagar Bansal via jyotibansalanalysis
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.