Expect consolidation and slow reversal
AS INFORMED BY ME IN MY PREVIOUS WEEK ARTICLE, INDEX HAD BREACHED 9279 LEVEL. NEXT, IT IS LIKELY TO TOUCH 9090 LEVEL. BEFORE THAT IT WILL HAVE SUPPORT AT 9184.
For Educational purpose only Breakout from the channel has a probability of around 70%. A strong breakout failure at bottom of the channel needs to conform the scenario
At trendline resistance
Nifty Pharma has done a breakout of multi year bearish channel and we are currently retesting the same. This is one of the best times to go long in Pharma Sector with small SL for long term. Individual Pharma Stocks showing the same.
Pharma index is at an important level, risk reward for long is favourable.
Downward Slopping Channel Breakout on Monthly Chart
How to know that Indian Pharma industry is making a turning around? Have a look at Nifty Pharma Index. It is above 200 DMA and holding above it, and secondly 50 and 100 DMAs are crossing on the upside. Then look at the major pharma stocks such Lupin, DrReddy, Cipla etc. Most of these stocks, barring a few, are above 200 DMA. So those above 200 DMA should be...
Pharma Index has been in downtrend since Dec 2017, but now it has shown some strength at 8800-8300 levels. On monthly chart index has formed bullish pattern which gives us confirmation for upside.Trade with the levels.
Nifty pharma looks we are near to worst time over period.
Weekly should signs of a reversal here
Disclaimer.. this is not an investment/trading advice
NIFTY PHARMA CNXPHARMA - Shows positive divergence while it has been in downfall since sometime. Pharma can be a good theme to play for next 12-18 months
Pharma index completed its impulsive rise in April 2015...Since then it has been showing a well confined correction which appears like a tripple zig zag. The correction seems to be over and we have a small impulse....Buy it traders with a small stop of 9770....as the rewards could be amazing...