Chart Busters: Top trading set-ups to watch out on Tuesday

The benchmark index, Nifty has witnessed a pullback rally on the first trading session of November month. The Nifty has gained 258 points or 1.46% and closed at 17929.65 level. The Nifty Midcap 100 and Nifty Smallcap 100 has outperformed the benchmark indices. The Nifty Realty has gained over 4% and Nifty Metal has gained 3.06%. The advance-decline ratio was in the favour of advancers.

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

Greenply Industries: The stock has formed a Dark Cloud Cover candlestick pattern as of May 28, 2021, and thereafter witnessed correction. The correction is halted near the 38.2% Fibonacci retracement level of its prior upward move and it coincides with the 50-day EMA level. This correction has resulted in the formation of a cup pattern.

On Monday, the stock has given cup pattern breakout. The length of the cup with handle pattern was 25-weeks and the depth of the pattern was about 25%. This breakout was confirmed by the above 50-day average volume. Currently, the stock is trading above its short and long-term moving averages. These averages are in a rising trajectory. The daily RSI is currently quoting at 79.29 and it is in a rising trajectory. The weekly RSI is also in bullish territory. The daily MACD stays bullish as it is trading above its zero line and signal line. On the weekly chart, the momentum indicator MACD line has crossed above the signal line, which resulted in the histogram turning positive.

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 upside, the target will place at Rs 275 level. On the downside, the 20-day EMA will act as support for the stock.

Bosch: The stock has given ascending triangle pattern breakout as on the weekend of October 08, 2021. After registering the high of Rs 18570, the stock has witnessed a minor throwback. During the throwback, the stock has retested the breakout level. The stock has formed a strong base near the breakout level and again started rising upward. On Monday, the stock has given a 5-days base breakout on the daily chart along with robust volume.

Currently, all the moving averages-based setups are showing bullish momentum. The momentum indicators and oscillators are also suggesting positive momentum. The daily RSI has given positive crossover and currently, it is in bullish territory. On the daily chart, the fast stochastic is trading above its slow stochastic line.

Based on the above observations, we expect the stock to resume its upward journey. On the upside, the prior swing high of Rs 18570 will act as resistance for the stock. While on the downside, the zone of Rs 16500-16600 will act as strong support for the stock.