Much on the expected lines, the markets made a clean breakout above 17250 the last Friday.
As expected, the rally faced resistance at 17750-17800 levels too and is now back again to retest the breakout.
Interestingly, the pullback has been slow over this week. Also today, the sensex rebounded in the last hour of trade leaving a 'Hammer' candle on the chart.
The retest of this breakout might be a successful one. Its time to build up positions in stocks that were mentioned before in the last post that would be making a retest too.
Some individual picks
Bank of Baroda
REC has been a classic trending stock. It has been in a downtrend since past one year.
It has made a breakout of the ascending triangle pattern today. Volumes have been rising from past few days supporting this rally.
Reversal patterns like these always point changing long term trends.
Caution: The stock has always been a slow mover (not a trader-friendly one) :)
As expected, the rally faced resistance at 17750-17800 levels too and is now back again to retest the breakout.
The retest of this breakout might be a successful one. Its time to build up positions in stocks that were mentioned before in the last post that would be making a retest too.
Some individual picks
Bank of Baroda
Though the rate sensitive banking stocks have been under pressure ever since the RBI hike and savings deregulation, BoB is showing some buying strength (see increased volume sticks in the chart).
Refer to the chart for price specifics.
REC
It has made a breakout of the ascending triangle pattern today. Volumes have been rising from past few days supporting this rally.
Reversal patterns like these always point changing long term trends.
Caution: The stock has always been a slow mover (not a trader-friendly one) :)
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