Axis Bank Post-Results Bullish Cypher Pattern Analysis
Table of Contents
Introduction
Hello friends, welcome back! Today, we’ll dive deep into Axis Bank’s analysis and discuss how we should trade it. This video is purely educational, and I recommend consulting your financial advisor before making any trade decisions. Without further ado, let’s get started.
Monthly Chart Analysis
First, we’ll start with the monthly chart. You can see that Axis Bank has formed a significant bearish candle after a substantial drop. There was a Wolf Wave pattern, which has reached its target.
Trend Line Adjustment
I want to show you some trend line adjustments:
- Primary Trend Line: This is the main trend line indicating support.
- Secondary Trend Line: This second trend line also shows support and resistance levels.
Horizontal Levels
Regarding horizontal levels, you can see that the 1150 level acts as an important support and resistance. After breaking out from this level, the stock tested new highs and has now returned to this support zone.
Weekly Chart Analysis
The same pattern is visible on the weekly chart. The stock, after a drop, has not broken the Bollinger Bands.
Daily Chart Analysis
Now, let’s move to the daily chart. Here, we’ll examine if any price action indicates a potential reversal.
Bullish Cypher Pattern
I have identified a Bullish Cypher Pattern on the chart of Axis Bank, which fits perfectly. We will use Fibonacci Retracement for this.
Fibonacci Retracement
- Point X: This is your Point X.
- Point C: This is your Point C.
- Point D: It should come at the 78.6% retracement.
This pattern indicates that the stock has formed a double bottom candlestick pattern and is now ready for a reversal.
Targets
Now, let’s discuss the targets.
Targets Based on Fibonacci Retracement
- First Target: 1200
- Second Target: 1224
- Third Target: 1240
- Fourth Target: 1268
If the stock holds the 1150 level, it can reach the above targets.
Indicator Study
Bollinger Bands
According to the Bollinger Bands, the stock has broken the lower band, indicating reversal chances.
RSI Indicator
The RSI indicator also shows divergence, which is a positive sign.
Option Table Analysis
Put-Call Ratio
According to the put-call ratio, the stock is likely to move gradually. The 1150 level is a crucial support.
Open Interest
The highest open interest at 1150 will act as support, while 1200 will act as resistance.
Conclusion
Overall, the technical analysis indicates a Bullish Cypher Pattern in Axis Bank. If the stock holds the 1150 level, it could move upwards to 1200, 1224, 1240, and 1268.
FAQs
The Bullish Cypher Pattern is a strong pattern in technical analysis and often signals trend reversals.
Always consult your financial advisor before making any investment decisions.
Yes, the 1150 level serves as a crucial support and resistance.
Bollinger Bands are used to identify volatility and potential reversals.
The RSI indicator helps identify overbought and oversold conditions and signals potential trend reversals.
