ITC Weekly Chart:
ITC Daily Chart:
ITC weekly chart shows sheer power of price channels. Price
has been trending continuously from Oct 2008 lows of 66 to recent high of 310. Friday price breached and close below the
price channel. But since this is about long term price trend change I would
like to follow 3% breakout rule given by Edward and Magee in order whipsaw.
There are bunch of supports
- Trend line support at 290.
- Minor support at 285.
- 200 days moving average ar 280.5.
- 5 months low SMA at 283.
- Blue uptrend line in day time frame.
3% rule coincides very close to last support of 200DSMA below which ground is open for bears to go in rampage.
So plan your trade accordingly.
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