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HDFC Technical Analysis: 28 Sept 2014

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 HDFC Technical Analysis:

Weekly Chart:

Last week candle showed a bounce (with long lower shadow) but this weeks candle was unable to continue the momentum (with long upper shadow). The week finally closed in red at 1038.

The 20 week EMA supported well for the week.

MACD generated a sell on weekly charts. Previous week’s high will act as strong resistance.

HDFC weekly

 

Daily Chart:

The thick RED line on daily chart looks like a developing neckline for a possible HnS pattern.

It has already fallen off the rising trend line and then got resisted at 1084 on Monday. 1084-1092 is a strong resistance zone for HDFC. Above this level, we could have uptrend continuing. A move above 1100 will confirm uptrend.

Break of neckline around 1005 level will complete the HnS pattern that will bring much deeper falls. Till then it is in trading range.

As HDFC is favorite of FIIs, break of neckline will also coincide weakness in Nifty for much deeper corrections.

MACD also gave a sell signal on Friday closing (coinciding with sell signal on weekly chart)

HDFC Daily