Long Positions Can Wait For Sometime
Updated
On the daily charts, HDFC Life has formed a Double Top pattern. A breakdown was observed on 9th March 2020. Subsequent to which lows of 340 was achieved 23rd March 2020. An intermediate rally has taken the stock to 495 as on 19th April where it faces major resistance of the primary trend line as well as a resistance zone in general. If the stock is not able to give a clear breakout on the upside, the stock could test its lows again. Also the rally mentioned beforehand does not have volumes to give an upside momentum. Until and unless the scrip gives a decisive close above 530, going long would not be advisable. Also if the reverses from current price of 495, we could see our targets of 455 (T1); 412 (T2) & 344 (T3).
As mentioned before, this view will be negated if the stock gives a closing above 530.
As mentioned before, this view will be negated if the stock gives a closing above 530.
Trade active
T1 of 455 achieved. Stock in downtrend, have a trailing stop loss and continue with the trade.Trade closed: target reached
T1 achieved subsequent to which our trailing stop loss was hit. The trade is now closed.
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