Bajaj Auto Short Term View

BAJAJ AUTO:- On a shorter time frame (2hr) bajaj auto had been moving in raising channel that signal if the price moves out from this channel the price will fall. Before moving out from the channel it was getting consolidate within a 3280 and 3140 approx 140 rs range. A few days ago it has moved below this range and the price started falling till 3000. Now the price has taken a pullback to the same level of 3160. 3140 was previously working as support now it becomes resistance and we are observing the selling pressure from this range.

This resistance is also the key junction of various moving averages on different time frames. I) on Daily chart 20 EMA standing at 3130, 50 EMA standing at 3137. II) On 4hr chart 50 ema standing at 3140. iii) On 2 hr chart 100 ema standing at 3140 and 200 ema standing at 3134 iv) On 1 hr chart 100 ema standing at 3140. All these EMA,s under a same range cumulatively creates a strong resistance zone of 3140 to 3130. On 1 hourly chart MACD is showing a negative divergence( price moved higher but MACD was moving sideways. Trend Line Breakout on RSI. Negative Divergence on Stochastic. A rising wedge pattern is also here which is also a bearish pattern breakout of this pattern that will continue the previous downtrend. All these indications giving negative signals that the stock may continue its short term downtrend.