Hdfc Life has been consistently forming lower highs and lower lows for the last 2-3 months however for the last few weeks while the stock has been forming lower highs it has formed a consistent low as indicated by the small yellow support line. The support area is also accompanied by a Red line which is the 200 EMA which is holding up strongly as well.
Any breach of that support area should give a quick 2-3% move and might see the stock fall further.
However Any breach of the upper trend line will also take the stock upwards and we might see some strong movement supported by volumes. On Friday the stock saw some strong volumes with volumes for the day standing at around 5-6x daily average volume in the last 3 months indicating a strong accumulation that happened. The stock has been facing downward pressure for a while and with the result movement played into, technicals should have its say now.
However with the incoming US Elections on the 3rd of November, please take into consideration that volatility will be peaking and we might see some wild movements within the day. Please try and cover overnight positions with a hedge (Futures, Options, Cash) just to be on the safe side.
Any breach of that support area should give a quick 2-3% move and might see the stock fall further.
However Any breach of the upper trend line will also take the stock upwards and we might see some strong movement supported by volumes. On Friday the stock saw some strong volumes with volumes for the day standing at around 5-6x daily average volume in the last 3 months indicating a strong accumulation that happened. The stock has been facing downward pressure for a while and with the result movement played into, technicals should have its say now.
However with the incoming US Elections on the 3rd of November, please take into consideration that volatility will be peaking and we might see some wild movements within the day. Please try and cover overnight positions with a hedge (Futures, Options, Cash) just to be on the safe side.