Trendline support, downtrend resistance & bullish divergence
For educational purposes.
Stock looks to be in long term downtrend and reached the trendline support on weekly timeframe.
Could go long with a small stop loss of 3 rs and a target of 15 rs (1:5 R:R ratio)
Reasons for long:
1. Higher time frame trendline support
2. Psychological support of rs 100
3. Bullish RSI divergence of 1 hour time frame
4. High risk reward ration
5. If breaks the downtrend line at 115 could be a flier from here
Stock looks to be in long term downtrend and reached the trendline support on weekly timeframe.
Could go long with a small stop loss of 3 rs and a target of 15 rs (1:5 R:R ratio)
Reasons for long:
1. Higher time frame trendline support
2. Psychological support of rs 100
3. Bullish RSI divergence of 1 hour time frame
4. High risk reward ration
5. If breaks the downtrend line at 115 could be a flier from here