ZEEL forms Dragonfly Doji candle on weekly scale

Vinayak Gangule
/ Categories: Trending
ZEEL forms Dragonfly Doji candle on weekly scale

The stock of ZEE Entertainment Enterprises Ltd formed a bearish harami candle as on weekend of March 8, 2019, and thereafter, the stock had seen almost 32 per cent downward move. However, at present, the stock had formed a Dragonfly Doji candle on the weekly scale.  

The Dragonfly Doji is typically interpreted as a bullish reversal candlestick pattern that mainly occurs at the bottom of downtrends. The most important part of the Dragonfly Doji is the long lower shadow. The long lower shadow implies that the market tested to find where the demand was located and found it.

Among the momentum indicators, the 14-period RSI is currently quoting at 46.77 and it has recently given positive crossover, which indicates that further upward momentum is on the card. The fast stochastic is also trading above its slow stochastic line. Moreover, the positive divergence is clearly visible between the daily RSI, daily stochastic and the stock price movement, which suggests limited downside.

Going ahead, if the stock sustains above Friday’s session high of Rs. 377.80 and trades convincingly above this level, then there is a high probability that the current week's low point of Rs. 309.35 would become a temporary bottom for the stock. 

On Friday, the stock of ZEE Entertainment Enterprises closed at Rs. 374.45, a surge of 8.32 per cent. The stock opened at Rs 350.10 and hit an intra-day high of Rs 377.80 and a low of Rs. 346.30 on the NSE.

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