Last week we saw Oil/ Gas sector was going up aggressively but now overall Oil and Gas Counter were struggling at the uptrend line.
Observation
1) Trendline - Broke the uptrend line yesterday and retrace downwards but supported strongly by the 20 Moving Average. There could be chances that on Monday this sector will pull back above the trend line so it is important to monitor on Monday before profit taking or accumulate
2) HH - Still above the previous higher low
3) MACD - Blue signal cut below the Red Signal indicating a starting of downtrend and if as mention above that on Monday if there is a reversal to pull back above the trend line it will indicate a 4R1G signal ( Accumulation time)
4) RSI - Retracing towards 70% and need to wait for Monday for confirmation.
- If this sector close above the uptrend line with strong reversal - Able to see a rebound at 70%
- If this sector still continue to go downwards, RSI will penetrate the 70% to indicate further downtrend
5) ADX - Momentum is still high but showing bearish signal
Conclusion
Wait for Monday Confirmation before profit taking or accumulate.
If rebound above the Uptrend line - New Bull Phase (accumulate)
If downward continuation - Better take some profit and wait for reversal at S1 - 53.91 and S2 - 52.24
Observation
1) Trendline - Broke the uptrend line yesterday and retrace downwards but supported strongly by the 20 Moving Average. There could be chances that on Monday this sector will pull back above the trend line so it is important to monitor on Monday before profit taking or accumulate
2) HH - Still above the previous higher low
3) MACD - Blue signal cut below the Red Signal indicating a starting of downtrend and if as mention above that on Monday if there is a reversal to pull back above the trend line it will indicate a 4R1G signal ( Accumulation time)
4) RSI - Retracing towards 70% and need to wait for Monday for confirmation.
- If this sector close above the uptrend line with strong reversal - Able to see a rebound at 70%
- If this sector still continue to go downwards, RSI will penetrate the 70% to indicate further downtrend
5) ADX - Momentum is still high but showing bearish signal
Conclusion
Wait for Monday Confirmation before profit taking or accumulate.
If rebound above the Uptrend line - New Bull Phase (accumulate)
If downward continuation - Better take some profit and wait for reversal at S1 - 53.91 and S2 - 52.24
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