Wedge pattern in Kotak BankKotak Mahindra Bank consolidating in a rising wedge pattern and is taking a resistance from the resistance zone.
Though,the stock is taking support at its 20 DMA. It has formed a perfect doji candle on the weekly time frame.
The stock is trading around its hourly 20 ema.
A trade can be initiated if the stock breaks down the wedge and an hourly candle close below the trend line(lower wedge line or 1910 price level).
The stock has been holding its level of 1900 and sustaining above it.
Confirmation to enter the trade.
1. Break down of the Wedge
2. Closing below 20 DMA.
3. Break down with high volume than previous day.
Intraday and swing trade both can be initiated in the stock.
Targets:- 1891, 1848, 1823
Stop loss :- High of the previous candle.
Wait for entry in the trade. Price action near the levels should confirm the entry.
