UnknownUnicorn14930146

Unveiling the Astonishing Overvaluation of Hindustan Aeronautic

Short
BSE:HAL   HINDUSTAN AERONAUTICS LIMITED
Detailed Technical Analysis about the direction of HAL

1. The HAL stock's actual value can be clearly observed on the 62-day chart. To demonstrate the accuracy of my analysis, I utilized the Search Volume Profile (SVP) to highlight the precision of my levels. If you're unfamiliar with SVP, I recommend conducting some research to expand your understanding.

2. What can we expect? : Undoubtedly, a bearish trend is anticipated. However, it's crucial to identify scenarios where the bearish trend may not unfold. Before delving into that, we need to comprehend the concept of the actual value of a stock.

3. The actual value of a stock refers to a state where no institutions have entered the market yet. During this phase, the market typically trades the asset within a specified range, as depicted by a red box or level on the chart.

4. How does price movement occur in the market? : Price movement follows a harmonic pattern around the actual value of the stock that red level, regardless of the asset or the extent of manipulation involved. This holds true before any market pumps or dumps take place. Think of it as a pendulum, with the actual value or high trading zone serving as the neutral point.

5. Under what circumstances might the bearish trend not materialize? : In the case of HAL, a price correction is imminent and unavoidable. The question then arises: how substantial will this correction be? As long as we observe a highly traded zone, which is confirmed by the SVP and illustrated in the image, that remains my target for the bearish trend.

However, this target can potentially change if the market establishes a new highly traded zone. Such an occurrence would cause the price to deviate from its previous value. Essentially, it suggests that the institution responsible for driving up the price may refrain from taking long or short positions in the market for a significant period. Now, one might question what the institution would do with HAL shares if it keeps them. It is likely that the institution intends to profit by shorting the market when it wants to retain the shares and the market shows reluctance to sell.

6. Check this very bearish divergence being formed on 16 days chart Therefore, before offering any bullish feedback or claiming that the price cannot decline, I encourage you to present your reasoning. Share your ideas and charts. I possess knowledge of various indicators, strategies, bots, and algorithms, and I can address any of your concerns within seconds. However, I am open to learning from others, so please feel free to challenge my analysis with logical arguments.

If I find some spare time, I will soon share my entry criteria for HAL. I welcome anyone to challenge my analysis, as it may provide an opportunity for me to learn something valuable from you.
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