Chart Busters: Top trading set-ups to watch out for Monday

The benchmark index, Nifty has continued its northward journey for the third consecutive week. The index has gained 443 points or 2.48% in the last five trading sessions. The price action has formed a sizeable bullish candle carrying higher high and higher low which indicates a continuation of the uptrend. Going ahead, the level of 18342 will act as major resistance for the index. While on the downside, the zone of 18119-18080 will provide the cushion in case of any immediate decline.

Here are the top trading set-ups to watch out for Monday.

Triveni Turbine: The stock has formed an Evening Doji Star candlestick pattern as of November 12, 2021, and thereafter witnessed correction. The correction is halted near the 100-day EMA level. During the period of correction, the stock has formed Ascending Triangle pattern on the daily chart.

On Friday, the stock has given a breakout of Ascending Triangle pattern on the daily chart. This breakout was confirmed by a robust volume of nearly 7 times of 50-days average volume, indicating strong buying interest by market participants. The 50-days average volume was 7.79 lakh while on Friday the stock has registered a total volume of 52.27 lakh. Additionally, the stock has formed an opening bullish marubozu candlestick pattern on breakout day, which indicates extreme bullishness.

On Friday, the stock has surged above its short-term moving averages, i.e. 20-day EMA and 50-day EMA levels. The stock's Relative Strength Index (RSI) has reached its highest value in the last 14-days, which is bullish. Also, it has surged above the 60 mark for the first time after 42 trading sessions. The MACD line just crossed the signal line, and the histogram became green.

In a nutshell, the stock has registered a bullish pattern breakout along with volume confirmation. As per the measure rule of Ascending Triangle pattern, the upside target is placed at Rs 213, followed by Rs 234 in the short term.

Alpa Laboratories: The stock has taken support in the zone of Rs 52.50-50.50 and thereafter witnessed nearly 88% upside in just 11 trading sessions. After registering the high of Rs 98.80, the stock has witnessed a minor throwback. During this throwback phase, the volume was mostly below the 50-day average volume, which suggests its routine decline after a robust move.

The throwback is halted near the 38.2% Fibonacci retracement level of its prior upward move (Rs 52.60-98.80) and it coincides with the 13-day EMA level. The stock has formed a strong base near the support zone and on Friday, it has given the breakout of base formation on the daily chart. This reversal from the support zone is further justified by robust volume. Interestingly, the 14-period RSI on the daily timeframe is in bullish territory. Furthermore, in the throwback phase, the RSI never breached its 60 mark, which indicates that the stock is in a super bullish range as per RSI range shift rules. The MACD is above the zero line and the signal line. The MACD histogram suggests bullish momentum.

The technical evidence indicates a strong upside in the coming trading sessions. The prior all-time high of Rs 98.80 will act as minor resistance for the stock. While on the downside, the level of Rs 82.20 will act as strong support for the stock.