Stocks go up or down with many pullbacks to test support and resistance. And everytime – they test support and resistance: the significance of support and resistance increases…so much so that next time when stock rallies to resistance: it automatically respects that line.
But the trading Opportunity is created when stock decides to overpower resistance/supports
Axis Bank Stock Chart
As you can see in the chart above: the 200 dma has been the dividing line between bullish and bearish territory. What is the most amazing thing: How stock has respected the support and resistance line i.e. 200 dma everytime it has pulled back and rallied into it.
Yesterday, Axis Bank once again stalled below 200 dma. The 200 dma as of today stands at 1052.
Since Axis Bank is respecting the 200 dma as line of resistance: wait for breakout above it. It means – the trading opportunity will come only when Axis Bank decides to break past 1052. If the stock does that – then it opens the gate for upside target of 1250-1300.
Please do your own due diligence before trading…