Bajaj finserv is in the super uptrend and looks like overbought on the monthly and weekly chart.
We can also see some negative divergence on the daily chart.
And if I go down to the hourly chart I can see it forming a Bearish Butterfly pattern.
The Butterfly pattern is a reversal pattern composed of four legs, marked X-A, A-B, B-C, and C-D.
It helps you identify when a current price move is likely approaching its end.
The Butterfly is a reversal pattern that allows you to enter the market at extreme highs and lows.
As we all know, Bajaj Finance is trading at extremely high levels, spotting this pattern can be a real deal.
This pattern suggests two resistance zone as it might see a sharp sell-off from there, which would definitely scare the weak hands.
Resistance zone 1: 17655 - 17716
Resistance zone 2: 17978 - 17992
This is a contra trade, hence risky, and should be traded with strict SL.
This is purely an educational post and should not be considered as a piece of advice to trade in the stock.
We can also see some negative divergence on the daily chart.
And if I go down to the hourly chart I can see it forming a Bearish Butterfly pattern.
The Butterfly pattern is a reversal pattern composed of four legs, marked X-A, A-B, B-C, and C-D.
It helps you identify when a current price move is likely approaching its end.
The Butterfly is a reversal pattern that allows you to enter the market at extreme highs and lows.
As we all know, Bajaj Finance is trading at extremely high levels, spotting this pattern can be a real deal.
This pattern suggests two resistance zone as it might see a sharp sell-off from there, which would definitely scare the weak hands.
Resistance zone 1: 17655 - 17716
Resistance zone 2: 17978 - 17992
This is a contra trade, hence risky, and should be traded with strict SL.
This is purely an educational post and should not be considered as a piece of advice to trade in the stock.