Positional Call – buy ADVANTA above 790 sl 690 target 900-1125

holding period 2-3 months

Chart Reading – We have plot 20 days simple moving average on Advanta chart and as we can see that its properly following its 20 MA average in downfall as well as in up movement also.  And if able to close above 790 level then it will clearly go above this average as currently it has just touched the average, so we expecting up move above proper crossing of average that is above 790 level if not cross then it may go through consolidation or fall also.

trend-line studies suggesting that its has taken proper support around recent low and started to move above its supply line. so we breaking upside resistance level and give us confirmation of change in trend.

Interesting formation in RSI on chart, after a negative divergence it has given fall from 1100 level till 690 level i.e. almost 400 rs. movement. And at present its forming positive divergence on chart, which we can spot clearly with the help of trend line drawn on chart and RSI indicator,  also RSI recently went to oversold zone and now its coming out of oversold zone can also give us a indication of upcoming of up movement in stock.

About the candle stick pattern it has form bullish Engulfing pattern on 3rd june 2013, can also suggest us about the reversal in its previous trend.

Overall study indicating that, Advanta is trading at support level now and if its able to cross certain resistance level then we can surly see up movement in this stock.