POSITIONAL CALL – Sell SIEMENS below 440 sl 500 target 350-250
As per all chart patterns stock is in already selling zone and we can expect more selling below given level, if it not able to close below this level then dont sell it please, if it able to sustain this level for next week and we can see reversal in stock which can also give up move till 485-525 also. so our trigger level should be consider as a mid level for trading please.
TECHNICAL STUDY –
If we look at the overall chart of the stock then we can see that it has already broken the SYMMETRIC TRIANGLE chart pattern at level of 520 almost, and this triangle is having width of rs. 150-200 range almost, so as per this pattern we may see more fall in stock in coming days after a confirmation of level again.
if we can see we can spot that bollinger band has also given a downside breakout and now we can say price is RIDING THE LOWER BAND now, and will be doing so till its not shows any reversal signal on chart.
look at the volume action on chart, every time stock has shown a reverse move after a heavy volume on chart, heavy volume also indicate that traders have booked profit in there position on that day and from next day it start with reverse move.
RSI indicate that it might give a CONVERGENCE signal very soon, as we have seen new low on chart but there is not new low in RSI yet.
So overall study re-present that if stock able to break our level in next 2 trading session then we can see a fall coming in this stock, but if it able to give a positive close on chart in next 2 session the we can see reverse move in price till the mention level, given level is looking highly important on chart now and its seems to be mid point of trend now, which can give move either way.