Chart-busters: Top trading set-ups to watch for Tuesday

The Nifty filled the May 05 gap and has broken an ascending triangle pattern and closed near the day high.

The benchmark also closed above the 38.2% retracement level of the prior downtrend. As the Nifty broke the base on the upside, it may trade positive for another 2-3 days. It may attempt to move above the 50DMA, currently at 16904. Index has broken the three weeks range decisively. Now, the only way to trade is to be with the trend.

The last three days of positive gap openings and closing at the day high is an indication of the trend strength. The 50DMA flattened and is currently at the 50%t retracement level of the prior trend. while RSI moved above the 50 zone and looking very strong. The MACD histogram shows the solid bullish strength and the TSI and the KST indicators have given fresh buy signals. After closing near the Anchored VWAP (16717) resistance, the Elder impulse system has formed a bullish bar for the second successive day. The only concern now is that the Nifty moved sideways in the last four hours, and the volume is lower than the previous day. These two concerns must be addressed the next day; otherwise, the trend will be questioned.

TRENT 

The stock has broken out of an ascending triangle with a higher volume. It is decisively closed above the 20DMA at the 34EMA. The MACD histogram shows a stronger bullish momentum and the RSI has crossed above the 50 zone and entered the bullish momentum. The +DMI is rising, and -DMI is declining. The Elder impulse system has formed a strong bullish bar, while TSI and KST also gave bullish signals as it closed at the Anchored VWAP. In short, the stock has broken the bullish pattern. A move above Rs 1124 is positive, and it can test Rs 1194. Maintain a stop loss at Rs 1085.

ICICIGI

The stock decisively closed above the 20DMA and was near the sloping trendline resistance. It entered the moving average ribbon, and the MACD has given a fresh buy signal. The RSI closed at the prior high and broke the channel, while the +DMI is about to cross the -DMI and closed above the Anchored VWAP Resistance. The TSI has given a fresh buy signal, and the KST is about to give a buy signal. In short, the stock closed at a crucial level. A move above Rs 1302 is positive, and it can test Rs 1330. Maintain a stop loss at Rs 1290.