Bajaj Auto - Looks Tired, maybe final distribution happening?Bearish for long-term. Can try positional short below 3150, with SL of 3250.
Long-term target T1 2000 (Best case)- T2 1650- T3 1500 (Worst case)
BAJAJ_AUTO trade ideas
BAJAJ AUTO IN BEARISH TREND ROTATIONBAJAJ AUTO HAS BEEN ON STRONG BULLISH MOVE FROM 30-JULY-2019 TO 01-NOVEMBER-2019. AFTER THAT STOCK FAILED TO CONTINUE BULLISH RUN AND FORMED DOUBLE TOP FORMATION BEFORE INR 3300 PSYCHOLOGICAL ROUND FIGURE MARK. AS WE KNOW DOUBLE TOP IS BEARISH REVERSAL SIGNAL. MORE OVER INR 3100 LEVEL WHICH HAS BEEN STRONG RESISTANCE MANY TIME IN PAST ON DAILY TIME FRAME, STOCK GOT SUPPORT AT "V" OF DOUBLE TOP RIGHT AT THAT INR 3100 LEVEL. STOCK BROKE THAT SUPPORT LEVEL OF INR 3100 ON 3RD JANUARY, 2020 AND NOW IN PRESENT TRADING AT THAT SAME INR 3100 LEVEL. AS WE ALL KNOW PAST SUPPORT BECOMES FUTURE RESISTANCE LEVEL, WE CAN LOOK TO ENTER SELL BAJAJ AUTO ON TWO WAYS.
1) AGGRESSIVE APPROACH: ENTER ON BREAK AND CLOSE BELOW DAILY CANDLE FROM NOW AND STOP AT 0.618 RETRACEMENT OF RECENT SWING LOW, WITH TARGET AROUND INR 2875 LEVEL WHICH IS ALSO AB=CD PATTERN.
2) CONSERVATIVE APPROACH: WAIT FOR PRISE TO RETRACE UPTO 0.618 OF RECENT SWING (SECOND TOP TO MOST RECENT LOW) AROUND INR 3177 MARK OR WAIT FOR RSI TO GO OVER BOUGHT AND FROM THERE LOOK TO ENTRY REASON ON LOWER TIME FRAME. WITH STOP LOSS AROUND INR 3305 LEVEL WITH TARGET OF INR 2875.
WHICHEVER APPROCH WE SELECT BOTH HAVE MORE THAN 1:2 RISK REWARD RATIO. ALTERNATIVELY TRADER CAN TAKE BOTH POSITIONS, IF AGGRESSIVE ENTRY GETS STOPPED OUT CONSERVATIVE ENTRY TRADE WILL GIVE ENOUGH PROFIT TO COVER THAT LOSS.
Short opportunity in Bajaj AutoStock travelling towards a major support area. Re-tracement sell for a good 50 point move downwards
Bajaj Auto - Reverse HNS PatternBajaj Auto formed a reverse HNS.
If breaks above 3000 Then we can see it cross 3150 and 3200
Trendline is formed in in 1 week chart. If breaks below 2800, Then trend might change to downtrend.
BAJAJ-AUTO Next ?2800-2811 stromg resistance...above that 2850-2880-2910 close above 2910 will move towards 3000
If not able to close above 2800-2810 then again 2750-2700 and below 2700 can slide till 2650-2600
