Worst scenario for those who are bullish thinking of potential Cup with Handle pattern formation on a broader outlook or reverse Head & Shoulder pattern on a narrower outlook.
If you look carefully, you can see the descending broadening wedge clearly as highlighted in my chart.
You can zoom out to see the broader view of my chart with all the drawings.
Technically this chart looks almost similar to the Ashok Leyland chart I have posted earlier this month.
TDI is at upper band with NIFTY AUTO nearing the resistance zone in confluence with the edge of pitchfork and upper edge of the descending broadening wedge highlighted.
Moreover a strong hidden bearish divergence in MACD histogram is observed on weekly timeframe. (Not applied here because chart is on daily timeframe).
Expecting a fall of approximately 30-33% towards 7700-8000 level, which is next possible support zone lying near golden Fib level.
The fundamental attributes of major auto companies are not looking good specially with the declining OPM% (At lowest levels).
It's better to avoid FOMO in auto sector stocks because of all good news and invest after this big correction or else keep averaging.
Do your own due diligence before taking any action.
Peace!!
If you look carefully, you can see the descending broadening wedge clearly as highlighted in my chart.
You can zoom out to see the broader view of my chart with all the drawings.
Technically this chart looks almost similar to the Ashok Leyland chart I have posted earlier this month.
TDI is at upper band with NIFTY AUTO nearing the resistance zone in confluence with the edge of pitchfork and upper edge of the descending broadening wedge highlighted.
Moreover a strong hidden bearish divergence in MACD histogram is observed on weekly timeframe. (Not applied here because chart is on daily timeframe).
Expecting a fall of approximately 30-33% towards 7700-8000 level, which is next possible support zone lying near golden Fib level.
The fundamental attributes of major auto companies are not looking good specially with the declining OPM% (At lowest levels).
It's better to avoid FOMO in auto sector stocks because of all good news and invest after this big correction or else keep averaging.
Do your own due diligence before taking any action.
Peace!!
