“Housing Development Finance Corporation (HDFC) since Febuary’12 had declined in a descending channel pattern which was successfully breached recently with tall white candle formations. The stock prior to the breakout formed a higher bottom which was successfully defended couple of times around the Rs630-Rs635 levels. The prices have managed to exceed their May’12 high which is a bullish Dow signal indicating a start of a higher high and low formations. The MACD has given a bullish crossover and has entered into the bullish territory. The indicator has also exceeded the descending trend line drawn from the January’12 highs which bullish.”
“The RSI indicator is currently rising and is above its March-April’12 highs indicating bullish momentum in the stock. The prices in short term are likely to test the falling window pattern which coincides with the short term rising channel drawn from the May’12 low which is around the Rs690-Rs695 levels. Decisive close above the Rs700 levels would fill the falling gap and would increase the possibility for the stock to test its previous all time high,” says Nirmal Bang research report.
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