RCF Report
📆 Monthly Time Frame:
📍 Price Action: Price is currently at a major support zone.
🔄 Trend Analysis: Downtrend (Dow Theory) remains intact.
📉 Moving Average: Price is near the 50 EMA.
🔍 Analysis: Price is not strongly bearish but not yet bullish. This zone might indicate a potential trend reversal in the upcoming sessions.
📆 Weekly Time Frame:
📍 Price Action: Price is near the 200 EMA.
🔄 Trend Status: No strong bearish momentum.
🔍 Analysis: Price shows signs of potential reversal. We need to look for a bullish setup in lower time frames.
📆 Daily Time Frame:
📈 Key Candlestick Patterns:
🛠️ 12th Feb: Hammer candle with a low of 132.36.
🔄 13th Feb: Inverted hammer at bottom – possible bullish reversal signal.
📉 14th Feb: Bearish candle with good volume, but closing above 132.36, indicating bulls’ presence.
🔍 Analysis: The past three days' price action suggests buyers are defending the support zone.
⏰ Hourly Time Frame:
🛑 Double Bottom: Pattern with bullish divergence observed.
📊 RSI Status: RSI is below 40; we need a close above 40 to confirm bullish swing setup.
🔍 Trade Setup:
🛒 Entry: Upon RSI closing above 40 on the hourly time frame.
📍 Stop Loss: 132.99 (Hourly Closing Basis)
🎯 Target 1: 147 (Risk-Reward Ratio: 1:6)
🎯 Target 2: 162
⚖️ CMP: 135
Conclusion:
RCF shows potential for a trend reversal across multiple time frames. Confirmation of RSI above 40 in the hourly chart will provide a low-risk entry opportunity with attractive risk-reward potential. Patience is essential to let the setup mature for the best results.
📈 Recommendation: Wait for RSI to close above 40 in the hourly time frame and then consider entering the trade with the defined risk and reward targets.
