HINDUNILVR trade ideas
Hindustan Unilever is set to fall after this Bearish divergence?Hey Friends,
Trading Mantra:
“An astute trader aims to enter the market during quiet times and take profits during wild times.” ― Alexander Elder,
According to J. Welles Wilder, the person who developed the Relative Strength Index, When the stock price and the directional momentum does not match each other, is called as Divergence. There are two types of divergence, a Bullish divergence and a Bearish Divergence.
Bullish Divergence occurs when the stock price makes lower low and RSI makes higher low, in other words the RSI resists to make a lower low despite the stock price making a lower low.
Bearish Divergence occurs when the stock price makes higher high and the RSI makes a lower high, in other words the RSI resists to make a higher high despite the stock price hitting the higher highs.
HINDUNILEVER | SELL | Price : 1830-1850 | Stop Loss 1864 | Target 1722, 1674
Observations on the Chart:
The stock made a low of 1478 on 11th Oct 2018 See point V1 low 1478 (blue vertical line) & a high of 1869 on 17th Dec 2018 see point V2 high (red vertical line)
Stock has been inching upwards with the blue trend line, which the stock has breached on friday 21st dec 2018
If we connect the highs of point A & point B we get an upward sloping line AB
if we connect the highs of the RSI at point C & D we get a downward sloping line CD
There is good amount of divergence on the price and the RSI indicator the price was making newer high at point B as compared to point A and the RSI was making lower high at point D as compared to point C
This is hinting towards a BEARISH DIVERGECE and the stock may fall to 1722 & 1674 in coming month.
One can take a short position around 1830 to 1850 with a strict stop loss of 1864
Isn’t it amazing ? ? ?
Billion Dollar Question to ask yourself
Are you finding any such patterns if not how to find them ?
Thank you for sharing….
Happy reading…
Happy Trading…
Be a Wealthy Trader…..
Crucial SupportStock is at crucial support ,hard to break as tried multiple times but if breakouts out below 1800 then can give a some nice points on intraday as well positional basis,with previous days HIGH AS SL ..
......................SL is little wide so that should be kept in minded before executing trade......
Resistance breakoutDear Traders,
It is a good opportunity to go long in Hindustan Unilever Ltd. The upper resistance breakout is triggered at 1808.75 and the Vertical Target is at 2070.
There is a high probability of reaching vertical target. There is a clear confirmation from MACD which is above the signal line and is bullish.
Hindustan Unilever - Bullish to Wave 5Hindustan Unilever seems to have finished Wave 4. Now there is a definite bullish bias....
HUL, BreakoutBroke out on the expected lines. Covering this consistently. Now 1711 is the resistance. New highs are expected. It may take time since traders will book profit.
HUL, ConsolidationPost big leap in price, consolidating. A breakout, whenever it may come will take the price to new levels.
HUL, BreakoutI covered this stock many times with the expectation of a breakout and today the same has occurred. Now staying above 1623 (the breakout point) price may make brisk upmove. Crossing and holding above 1643, price may be pushed towards 1706 in near future. I am slightly concerned about the Negative Divergence. Else, good move may be in the offing. Good stock and good industry segment. Good monsoon forecast may boost confidence of the bulls.
HUL, ConsolidationPosted this chart many times. Breakout is yet to happen. When price breaks out of the rectangular narrow range, it will be similar to that of Infy.
HUL Weekly SetupHul has given stron results in this quarter. Company is fundamentally strong.I Will wait for Buy at given levels. More correction is expected which is taken as opportunity to buy.
HUL, ConsolidationAfter a big rise, price is in consolidating in a box. OI resistance has been at 1600 and 1645. So correction is happening from resistance level and support lies at 1490 to 1610. We recommend going long at support zone with a small SL.
HUL, BreakoutA breakout chart in strong bullish phase. Now the marked range -- 1559 (support) to 1604 (resistance) is crucial. Expect one more breakout above the immediate resistance zone short term target of which could be 1640 to 1680.
Hindunilvr, BreakoutProtecting 1400 --the previous top, this stock will be a big thing for coming months as the expected breakout is anything to go by. The stock is in strong bull market, a premium stock.
HINDUNILVR v close to a major highHINDUNILVR v close to a major high .. build shorts until 1500 target atleast 1300
HindUnilvr, S&RPlease refer to earlier post on this stock. Support and Resistance: These levels of Support and Resistance is to decide the bullish momentum remaining intact in near term.
HUL, Golden CrossHindUnilever: I am studying 25 years chart of this stock to find unfolding of a great bullish trend. (Trading View provides chart from 2009 onwards). From 1997 to 2007 price consolidated in a narrow range. After 10 long years, a powerful breakout took the price to new heights till 2014. From 2014 to 2017 price again consolidated and then broke out once more.
Observations:
a) Negative cross of 50 DMA and 200 DMA could not cause serious harms. Rather bulls availed golden chances.
b) Positive cross of 50 DMA and 200 DMA always created great investment opportunities.
c) In January 2018 a negative divergence gave a correction to price but trend remained intact.
d) On 9th March 2018 a positive divergence heralded the end of this medium term correction.
If market favors, price can reach previous high at 1405, which is the immediate resistance.
