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

On Wednesday, the benchmark index Nifty has gained over 1% or 183.70 points. The price action has formed a small body bullish candle and the leading indicator, 14-period daily RSI is on verge of giving positive crossover. On the higher side, the 8-day EMA will act as strong resistance for the index, which is currently placed at the 17281 level. India VIX has lost over 8%.

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

Mirza International: On November 04, 2021, the stock has given a downward sloping trendline breakout on the daily chart and thereafter witnessed a 35% upside in just 7 trading sessions. After registering the high of Rs 94.40, the stock has witnessed minor throwback along with low volume. The throwback is halted near the 20-day EMA level.

On Wednesday, the stock has given downward sloping trendline breakout on the daily chart. This breakout was supported by a robust volume of more than 4 times of 50-days average volume. This indicates strong buying interest by market participants. The 50-days average volume was 17.80 lakh while on Wednesday the stock has registered a total volume of 79.41 lakh.

As the stock is trading at its 52-week high, all the moving averages based on trade set-ups are showing a bullish strength in the stock. Daryl Guppy’s multiple moving averages is suggesting a bullish strength in the stock. It is trading above all the 12 short and long term moving averages where the averages are all trending up, and they are in a sequence. The daily RSI has also given positive crossover, which is a bullish sign.

Technically, all the factors are currently aligned in support of the bulls. Hence, we would advise the traders to be with a bullish bias. On the downside, the 20-day EMA will act as strong support for the stock, which is currently placed at Rs 83 level.

Mtar Technologies: The major trend of the stock is bullish as it is marking the sequence of higher tops and higher bottoms on the daily chart. After registering the high of Rs 2391, the stock has witnessed minor throwback along with relatively lower volume. The throwback is halted near the 61.8% Fibonacci retracement level of its prior upward move (Rs 1752.05-Rs 2391) and it coincides with the 13-day EMA level.

The stock has formed a base near the support zone and resumed its upward journey. The reversal from the support zone is further justified by above 50-days average volume. Currently, the stock is trading above its short and long-term moving averages. These averages are edging higher, which is a bullish sign. The 14-period RSI on the daily timeframe is in bullish territory and it has given positive crossover. Furthermore, in the recent 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 daily MACD stays bullish as it is trading above its zero line and signal line.

Based on the above observations, we expect the stock to continue its upward movement. On the downside, the 13-day EMA will act as strong support for the stock.