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

The benchmark index Nifty has witnessed follow up move after the formation of a Morning Star like candlestick pattern. Interestingly, the index has retraced more than 61.8% of its prior downward move which is started from all time high level of 17947.65 to the low of 17452.90 level.

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

Ador Welding: The stock has formed a Gravestone Doji candlestick pattern as of July 16, 2021, and thereafter witnessed correction along with low volume. The correction is halted near the 38.2% Fibonacci retracement level of its prior upward move, and it coincides with its 13-week EMA level. On Tuesday, the stock has given a 31-days consolidation breakout on the daily chart. The volume was expanded by over 5 times of 50-days average volume, which indicates important buying interest. The 50-days average volume was 16145 while today the stock has registered a total volume of 83200. Interestingly, the daily RSI has also given a consolidation breakout, which is a bullish sign. The weekly RSI has given bullish crossover in the super bullish zone. Recently, the daily MACD line just crossed the signal line, and the histogram became green. On the daily timeframe, ADX is 12.20 and suggests that the trend is yet to be developed. Directional indicators continue in the ‘buy’ mode as +DI continues above –DI. Hence, we would advise the traders to be with a bullish bias. On the downside, the zone of Rs 665-Rs 680 is likely to act as crucial support for the stock. While on the upside, the level of Rs 782 may act as immediate resistance for the stock.

Bhageria Industries: The stock has formed Doji candlestick pattern as on the weekend of July 23, 2021, and thereafter witnessed correction. The correction is halted near the 50% Fibonacci retracement level of its prior upward move, and it coincides with the 20-week EMA level. The stock has formed a strong base near the 20-week EMA and thereafter initiated its upward journey. On Tuesday, the stock has given cup pattern breakout on the daily chart. The length of the cup pattern was 10-weeks, and the depth of the pattern was about 26%. This breakout was supported by robust volume. Additionally, the stock had formed an opening bullish Marubozu candle on breakout day, which adds strength to it. The opening bullish Marubozu candle has no shadow extending from the open price end of the body. Opening bullish Marubozu candle indicates extreme bullishness. The momentum indicators and oscillators are also suggesting bullish momentum. The weekly RSI has taken support near the 60 zone and bounced sharply. The daily RSI has surged above its prior swing high. The daily MACD stays bullish as it is trading above its zero line and signal line. Technically, all the factors are currently aligned in support of the bulls. Hence, we would advise the traders to be with a bullish bias. Going ahead, the zone of Rs 280-Rs 271 level is a crucial support area and the level of Rs 350-Rs 355 is a resistance. zone.