CNXFMCG is currently in a consolidation after an aggressive uptrend. The 20 and 50 SMA (daily TF) have also started to converge signaling towards either a long consolidation period (and then continuing upwards) or the start of a downtrend on an hourly TF.
I love how FMCG has been moving for a long time (2015!). Every time it makes a new high, it reverts and tests precisely the last All time high that acts as a strong support every time.
Can use this idea to short and go long on FMCG stocks accordingly.
Current status for long term is short
Nifty FMCG led the Nifty rally and is overbought now
Some bearish candlestick patterns have printed in the last few sessions
Last engulfing top pattern has sometimes marked lasting tops on the index in the past
Bulls need to be cautious
Here are a few stocks that have the potential to do well, in collaboration with @AVENUESOFINVESTMENT. You might feel that's a lot of stocks, but good stocks correcting a little has given birth to several opportunities. Also, the video cuts abruptly because TradingView has a 20 min max recording limit.
FMCG sector has corrected from the all time high and now trading at daily support. Since this sector is very bullish in weekly and monthly timeframe , we might see the good bouce next week
Levels to be watched , focus for buy following stocks if this index trading above 39200, and can go upto 39900 /40300/41000...
FMCG is considered as a defend sector in any pandemic situation and it proved in covid situation. FMCG hold firm in COVID. and the sentiment is too bullish among retailers but the index is not showing any strength and even after covid recovery FMCG is still under performing.
Technically we can see RSI divergence in FMCG index and also on some weightage stock like...