To trade using Fibonacci retracement, identify a strong price movement (uptrend or downtrend) on the chart. Draw the Fibonacci retracement levels between the swing high and the swing low. Common levels to watch are 38.2%, 50%, 61.8%, and 78.6% as these often act as support or resistance.
When the price approaches these levels, look for signs of reversal, such as candlestick patterns or momentum indicators. If the price bounces from a key level, consider entering a trade in the direction of the trend. Always use proper risk management with stop-loss orders for protection.
Bharti Airtel Limited
Bharti Airtel is one of India’s leading telecom companies, providing mobile, broadband, and digital services across the country. With a strong presence in multiple markets, Airtel is known for its innovation, expansive network, and competitive offerings, making it a key player in India’s telecommunications industry.
The stock has taken strong support between 61.8% and 78.6% and has gone up significantly to the levels of Rs. 1,636 from the levels of Rs. 1,520. This indicates a strong undercurrent of bullish momentum.
Sun Pharmaceutical Limited
Sun Pharmaceutical Industries Ltd. is a global pharmaceutical company based in India, known for its diverse portfolio of branded and generic medicines. With a strong focus on research and
development, Sun Pharma has established a significant presence in over 100 countries, making it one of the world’s largest and most trusted pharmaceutical companies.
The shares of Sun Pharma went up 3 times from the retracement levels of 38.2% which also corresponds to the Rs. 1,736 price level. This indicates that this level is a strong demand zone for the stock.
Mazagon Dock Shipbuilders Limited
Mazagon Dock Shipbuilders Limited (MDL) is a leading defense public sector undertaking (PSU) in India, specializing in the design, construction, and repair of warships and submarines. With a rich history of serving the Indian Navy and Coast Guard, MDL plays a crucial role in strengthening India’s defense capabilities and maritime security.
As we can see on the chart the zone between 50% and 61.8% has consistently acted as a support on numerous occasions. This indicates that these correspond to a strong buying zone and act as a good accumulation level.
Written By: Dipangshu Kundu
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
