symbol:- apollotyre
current trend:- uptrend
moving averages :- 5 days , 21 days EMA of high and low used . currently the stock price is above 5day and 21 day EMA
Fibanocci Retracements:- We have calculated the Fibanocci retracements from 01 -Apr -2017 till today . The 30% Fibanocci retracement is at 260 and 61.80% Fibanocci retracement is at 240.
Indicator :- RSI . There is a negative divergence appearing on this indicator . Notice that the stock made a peak on 9th Jan 2018 and another peak on 17 April 2018 . That is the stock made higher highs and higher lows , while the RSI made lower highs . A perfect negative divergence.
Interpretation:- Short the stock if the 5 day crosses 21 day from above and the RSI breaks the signal line . Short at 240 or 260.
To
Respected Nandgopal ,
As per my understanding of the technical analysis, for calculating the fibonacci retracement, one has to take the significant Swing high and swing low levels and then apply fibonacci retracement levels. You have chosen the interval between 01/04/2018 till today, but 03/04/2018 ,the first trading day of the April is not the swing low and swing low is formed on 23/03/2018. As per these low and swing high of 14/04/2018 , the 38.2% retracement is at 286.22. Apollo Tyre has taken a support around this level and started moving up , since last 3 days, including today. As per my understanding the script should touch the previous swing high levels of 17/04/2018 of 307.25 or at least it should touch the open [ Rs. 301] of 17/04/2018.
As the risk reward ratio is not favourable for the long entry at this point, I think one should wait till clear picture emerges.
I would like senior members of the group for their comments on the script, as I am the new comer to the Eqsis family.
Thanks and regards,
Dr. Bhushan
Apollo tyres made a high of 300.7 on 02/05/2018., which is very close to my prediction of 301 [ open of 17/04/2018].