Cement Stocks in DANGER!🩸
Attached: Custom Cement Index/ Nifty 50 Daily Chart as of 21st April 2023
(Note: The above Chart is my Custom Cement Index made up of all the F&O Cement Stocks and this is the Ratio/ Relative Strength Chart version of it, against Index Nifty 50. This gives us an idea of the Relative Strength of the Cement Stocks and used to find out whether they are likely to Outperform or Underperform.)
Observations as follows:
Price based:
- A Clear Double Top Breakdown on the Ratio Chart with Break of Support accompanied by Bearish Power Candles!🩸
- The Ratio was in a Down Trend prior to the Range that formed. Presently the Ratio has rejected from the High of the Range and can head to the Low of the Range
- If you Zoom Out on this Chart or go to the Weekly TF, a Bear Flag/ Wedge Pattern is also visible
Indicator based:
- Daily RSI is now in Oversold (below 30) territory indicating a Strong Bear
- Daily MACD which was already in Sell has crossed below the 0 line
- DMI is in Sell and ADX may start to turn up
All the above Observations signal that the Cement Stock Basket is likely to Underperform🐻/ are Potential Short Candidates📉 !
Some names that have Short Setups are: ACC, AMBUJACEM (already shared in my Related Ideas), ULTRACEMCO, GRASIM, JKCEMENT
(Note: The above Chart is my Custom Cement Index made up of all the F&O Cement Stocks and this is the Ratio/ Relative Strength Chart version of it, against Index Nifty 50. This gives us an idea of the Relative Strength of the Cement Stocks and used to find out whether they are likely to Outperform or Underperform.)
Observations as follows:
Price based:
- A Clear Double Top Breakdown on the Ratio Chart with Break of Support accompanied by Bearish Power Candles!🩸
- The Ratio was in a Down Trend prior to the Range that formed. Presently the Ratio has rejected from the High of the Range and can head to the Low of the Range
- If you Zoom Out on this Chart or go to the Weekly TF, a Bear Flag/ Wedge Pattern is also visible
Indicator based:
- Daily RSI is now in Oversold (below 30) territory indicating a Strong Bear
- Daily MACD which was already in Sell has crossed below the 0 line
- DMI is in Sell and ADX may start to turn up
All the above Observations signal that the Cement Stock Basket is likely to Underperform🐻/ are Potential Short Candidates📉 !
Some names that have Short Setups are: ACC, AMBUJACEM (already shared in my Related Ideas), ULTRACEMCO, GRASIM, JKCEMENT
Siddharth Bhansali
✔️Twitter Handle @T_Harth
✔️Twitter Handle @T_Harth
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