Watchlist for January 24, 2020 (Friday)
After a strong rally breaking the previous resistance of 235, DLF has formed a descending triangle pattern, which is usually a continuation pattern. If the stock is able to move past the resistance zone formed by the pattern, the stock is expected to rally further.
Although not as strong as DLF, JUBLFOOD has now formed a rising wedge pattern which is a sign that the stock is ready for a fall once the support is broken decisively. So, one would go short once the support is breached.
Right now, this particular stock is at a confluence of two patterns and it is having a very high probability of moving forward with a renewed momentum if it could break the resistance line. AMBUJACEM has hit the resistance four times and now has also completed a Cup and Handle formation. With the price now hovering near the resistance along with a complete Cup and Handle, the stock is expected to move forward after crossing the resistance.
Breaking the prior resistance at 635, the stock has surged till 700 with ease and now is facing a resistance around the 715 zone. Having formed a Flag, usually a sign of continuation, the stock is expected to have further upside if it is able to break out of the Flag and move past 720.
Having fallen last Friday creating a gap, the stock has been unable to fill the gap and has kept forming lower highs with a stiff resistance zone around 1320. Having failed to fill the gap for a week, the bears might further push the stock down once the stock falls beyond the zone of 1320.
Surpassing the previous resistance zone of 4260, the stock has formed a converging triangle, which is generally considered to be a continuation pattern. One can expect the stock to move forward providing further gains if the stock moves out of the pattern from above.