UPDATE ON ITC 05 SEP 2022
When at first the blog posted ITC was trading near 244. Today the stock has moved 40% upside. Such a big move in a period of 6 months. So what is the future of this stock ?
From here on ITC has the capacity to roll towards 344 to 350 Range. But it has to Sustain at those levels and give a strong closing above it on monthly and weekly time frame.
Shorter Time horizon
On shorter time frame the stock can either consolidate between 300 to 320. And then it can proceed its long run up. It is fundamentally strong stock. I Will continue to accumulate at every dip of 10% or more.
What is Best swing trading strategies in ITC ?
Best swing trading strategies in ITC . Swing Trading is for shorter time period. We have various methods to analyze a chart. Support and resistance in one such method. A trader holds a stock for few days or weeks. So it depends on individual if they are willing to hold for few days or few weeks or few months. Its purely about there conviction on the stock and swing trading strategy method they use.
In today’s blog we are going to look into ITC’s chart on weekly and daily time frame. In below chart of ITC you can see three resistance and three support zone. Support zone in the chart shows that a sudden demand for the stock moved the share price of ITC higher. Resistance zone shows supply of stock and made the share price of ITC to fall.
Support and resistance is used to draw the trend line. So we are considering Weekly and daily time frame. Trend line covered is form a period of Jan 2019 to Jan 2022 which is a total of 3 years.
We all are aware that Share price of ITC is slow moving because of its cigratte business. So the company is expanding into food business and its investments into the same is improving over a period of years. Till now we discussed an overall picture of Share price of ITC and we also discussed the about Support and Resistance which becomes the Best swing trading strategies in ITC.
How to use the support and resistance ?
As the ITC share price is approaching closer to resistance zone. we have to wait for it to break and trade above the resistance zone. There is also a chance of consolidation before the breakout. In this type of chart pattern the best time to enter the trade is during Share price of ITC approaching Support area.
How to execute the trade ?
Share price of ITC has to close above 260 levels on daily time frame after a consolidation close to resistance level. Once above criteria is satisfied we can enter the trade. so, once the trade is executed we need to know two things. Target price and Stop loss.
Based on past performance of ITC i have considered very conservative targets. So, our first target can be close to 300 levels and second target can be close to 360 levels. Stop loss can be derived only after the share price of ITC closes above resistance zone. So, we have to wait and watch.
In case stock does not close above resistance trend line there are chances it falls down to support zone. I will further update the article once stock is performing as per our plan. you can also check my instagram “finotox” for quick update.
If you like the article do checkout my previous strategy blog “here”
The Analysis discussed in the market analysis, research reports, etc. may not be suitable for all investors or traders. This is completely for educational purpose only. I am not a SEBI registered advisor. This blog is made for my personal tracking. Do your own research before entering into any kind of trade.