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

On the monthly expiry day, the benchmark index Nifty has traded in the range of 118 points and ended at 17203.95 level with the loss of 0.06%. The indecisiveness among the investors and traders is clearly visible on the chart as for the second consecutive trading session, the Nifty index has formed Doji candle. Going ahead, the zone of 17286-17146 will be crucial for any trend move. The advance-decline ratio was tilted in the favour of decliners.

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

Quick Heal Technologies: The stock has formed a Shooting Star candlestick pattern as of August 06, 2021, and thereafter witnessed sharp correction. The correction is halted near the 61.8% Fibonacci retracement level of its prior upward move (Rs 150-Rs 318.90).

During this corrective phase, the stock has formed Adam and Adam double bottom pattern. On Thursday, it has given neckline breakout on the daily chart. This breakout was confirmed by robust volume. Also, the stock has formed a sizeable bullish candle on breakout day, which adds strength to the breakout.

Currently, the stock is trading above its short and long term moving averages. The 20-day EMA and 50-day EMA has started edging higher which is a bullish sign. The leading indicator, 14-period daily RSI has taken support near the 40 mark and on Thursday, it surged above the 60 mark. The RSI is trading above its 9-day average and it is in rising mode. Besides, the ADX, which shows the strength of the trend, turned upside and moved above the -DI.

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. While on the downside, the level of Rs 265 will act as strong resistance for the stock.

TD Power Systems: The major trend of the stock is bullish as it is marking the sequence of higher tops and higher bottoms. After registering the high of Rs 435, the stock has witnessed a minor throwback, which is halted near the 38.2% Fibonacci retracement level of its prior upward move. During the period of the throwback, the stock has formed Ascending triangle pattern on the daily chart.

On Thursday, it has given a breakout of Ascending triangle pattern on the daily chart. This breakout was confirmed by above 50-days average volume. 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.

Interestingly, the daily RSI has also given the breakout of the falling channel on the daily chart, which is a bullish sign. The weekly RSI is in the super bullish zone and it has given a positive crossover. The daily stochastic has also given positive crossover. Martin Pring’s long term KST set-up has also given a buy signal. The ADX is reasonably good at 22.04 levels. The +DI is above the -DI and ADX shows strength in the trend.

Considering the robust technical structure of the stock we believe it is likely to continue its upward journey. As per the measure rules of ascending triangle pattern, the upside target is placed at Rs 490, followed by Rs 505 level. On the downside, the 20-day EMA will act as strong support for the stock.