Buying Opportunity in JM Financial

JM Financial has moved from a high of 191.60 to a low of 55.45. The zone of 67 to 57 is a demand zone, every time market hits this zone we see a pullback from this zone. Earlier it used to be a supply zone where the bears would get activated. Now it has been converted into a support zone or a Demand Zone.

Now focus on price action.

1st thing to notice on this chart is that the price is taking support in this zone and taking a pullback from this area.

2nd thing to notice on this chart is volume. The volumes are getting increased with an increase in this price. This is an indication of the buyer's interest.

3rd thing to notice that big red candle. This month we have seen a big fall from 117 to 60.40. but the volumes are very low. This shows that the fall was not so strong and it can be taken over by bulls and after that, we are seeing the volumes are getting increased as the stock is increasing. This is the indication of bulls strength.

4th indication to notice is RSI. RSI has been in the compression zone (40-55) for the last 2 years. If RSI moves above this zone that will be the indication of the strength in the uptrend.

According to the daily chart, 200EMA will be an important level as it is converging with the support trendline of the rising channel.

Look for the 80 level for entry. It has the potential to touch 105 if it continues to follow the rising channel.