MFSL (In a very tricky space.)
There is a lot of talk about in this stock so I will go point wise.
1- The price is forming a triangle at the very crucial area. 642 zone has not been breached for a while and any breach of the same should give a good momentum upward move. A consolidation below a crucial zone gives us more conviction of a convincing breach and continuation. So purely going by the price action theory a breach of either side should give a good momentum move.
2- In you see the RSI indicator, it has been forming a Lower High on the pointed arrows while if you see the green arrow points on the price it has formed a Higher High / Similar High in the same time period at the same points. This is also known as a Bearish divergence. In case the price is not able to breach the triangle tomorrow then it ideally should continue its downtrend and possibly test 566 levels if it is able to breach the lower trend line.
3- A breach of the upside supported by the breach of the blue line on the RSI will negate the theory of Bearish divergence and might support the move of the price going up.
There is a lot to keep in mind in this trade. I have tried to consider every possibility and put it forward. I might be wrong in my analysis but this is the best I know.
Trade with Caution.
1- The price is forming a triangle at the very crucial area. 642 zone has not been breached for a while and any breach of the same should give a good momentum upward move. A consolidation below a crucial zone gives us more conviction of a convincing breach and continuation. So purely going by the price action theory a breach of either side should give a good momentum move.
2- In you see the RSI indicator, it has been forming a Lower High on the pointed arrows while if you see the green arrow points on the price it has formed a Higher High / Similar High in the same time period at the same points. This is also known as a Bearish divergence. In case the price is not able to breach the triangle tomorrow then it ideally should continue its downtrend and possibly test 566 levels if it is able to breach the lower trend line.
3- A breach of the upside supported by the breach of the blue line on the RSI will negate the theory of Bearish divergence and might support the move of the price going up.
There is a lot to keep in mind in this trade. I have tried to consider every possibility and put it forward. I might be wrong in my analysis but this is the best I know.
Trade with Caution.
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