Power Grid looks set for a good momentum move after being in a range bound channel for a while. My rationale behind the possible strong momentum is given below:
The Parallel Channel and the Blue lines shown are important levels in the monthly / Weekly time frame which shows a strong area of Resistance / Support. The Channel is an area of Indecision where the price has bounced off and back consistently. The Green line is a daily trend line which is being respected and is acting as a support. The Yellow line is the Daily / Hourly resistance line which the stock has found difficult to breach in the short run. I have further incorporated some indicators such as CPR, MACD and EMA.
In MACD we can see a positive divergence and a certain yellow trend line which is being respected and it shows a certain area of support and a bullish sentiment. The CPR is in a very narrow range following a wide CPR which shows an area of indecision and a movement on any side will be a strong one. The moving averages are also acting as a support.
So the sentiment from this rationale is surely bullish, however erratic volumes in the last few days have also shown exhaustion moves and the stock has retraced back.
The Parallel Channel and the Blue lines shown are important levels in the monthly / Weekly time frame which shows a strong area of Resistance / Support. The Channel is an area of Indecision where the price has bounced off and back consistently. The Green line is a daily trend line which is being respected and is acting as a support. The Yellow line is the Daily / Hourly resistance line which the stock has found difficult to breach in the short run. I have further incorporated some indicators such as CPR, MACD and EMA.
In MACD we can see a positive divergence and a certain yellow trend line which is being respected and it shows a certain area of support and a bullish sentiment. The CPR is in a very narrow range following a wide CPR which shows an area of indecision and a movement on any side will be a strong one. The moving averages are also acting as a support.
So the sentiment from this rationale is surely bullish, however erratic volumes in the last few days have also shown exhaustion moves and the stock has retraced back.