ITC fuelling up for launch to 300+? Bullish Fib based View This analysis is based on purely technical perspective with a Bullish bias primarily based on Fibonacci levels and support/resistance model.
ITC has been grinding up slowly on Daily since the low of 134.6 from last year and is currently forming a Bullish Ascending Triangle as shown in the chart.
Also the price has tested the broken support zone twice and last week, the test of this broken support was done with extremely bullish momentum which signals that the Bulls are ready to launch the price to 300+ and the technical view using Fib retracement and extensions is shown in the chart.
3 sets of Fib levels are drawn on the chart.
1. Downward Fib extension from 367.7 (extended from 322.95)
2. Upward Fibonacci Retracement from 134.6 to 367.7
3. Upward Fib extension from 134.6 (extended from 158)
The confluence zone of 0.618 fib of downward fib ext, 0.5 fib of upward fib retracement and 1.618 of upward fib extension will be the Critical Resistance Zone as it was the important pivot low of the downward extension and also the 0.618 of the same extension drawn as shown on chart.
Breach of this zone will potentially propel price to the Volatility exhaustion limits of the upward fib extension of 2.618 level and also the 1st weekly resistance zone.
Price breaching this zone will test the All Time High price and this is where the momentum matters for price pushing into unchartered territory and the extremely strong Fib resistance of 4.236 fib at 408.55 price level will be the exhaustion zone.
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