Delta Corp forms bullish belt hold pattern

Vinayak Gangule
/ Categories: Trending
Delta Corp forms bullish belt hold pattern

The stock of Delta Corp Ltd has witnessed a triple top pattern on April 3, 2019 and, thereafter, it marked a sequence of lower tops and lower bottoms. However, at present, the stock had formed bullish belt hold candlestick pattern near the horizontal trendline support, which signals a shift in the sentiment from bearish to bullish.

The bullish belt hold is a single candlestick pattern that suggests a possible reversal to the upside. The bullish belt hold candle is similar in appearance to a bullish opening Marubozu candle that occurs in a downtrend. The market is trending when a gap in the direction of trend occurs on the open. From that point, the market never looks back: All further price action that day is the opposite of the previous trend. This causes much concern, and many positions will be covered or sold, which will help accentuate the reversal.

Among the momentum indicators, the 14-period RSI has bounced back after hitting the extreme oversold zone and currently quoting at 30.15 level. The fast stochastic line is also trading above its slow stochastic line. Moreover, the positive divergence is clearly visible between the daily RSI, daily stochastic and stock price movement, which suggest limited downside.

Going ahead, if the stock sustains above the Tuesday session high of Rs. 210.90 and trades convincingly above this level, there is high probability that Tuesdayā€™s low point of Rs. 184.10 would become a temporary bottom for the stock. 

On Tuesday, the stock of Delta Corp closed at Rs. 202.10, surging by 8.60 per cent. The stock opened at Rs. 184.10 and hit an intra-day high of Rs. 210.90 and a low of Rs. 184.10 on the NSE.

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