AXISBANK NSE Stock | Technical Analysis | Dec 2019 Overview

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AXISBANK is showing steady growth in the long term and is in a continuous uptrend. Below you can see the yearly chart of AXISBANK. It’s currently trading at 717.60(Price may vary during your time of reading).

AXISBANK Yearly Chart Dec 2019

In 2019, AXISBANK made a high of 827.75. Let’s look at the lower time frame for trading opportunities.

AXISBANK Halfyearly Time Frame Candlestick Charts Dec 2019

I have marked three candlestick wick highs as a reference for nearest support levels. In the below candlestick price chart of AXISBANK, you can see numbering on 3 crucial price candles.

AXISBANK Half Yearly Chart Dec 2019

I will be combining price levels of entire candlestick wicks, marked as 1,2 and 3 in the above-shown charts and marking it as an immediate support level as seen in the below chart.

AXISBANK Half Yearly Chart Dec 2019-Immediate support levels between 654.90 and 535.80

AXISBANK Half Yearly Chart shows us immediate support levels between price level of 654.90 and 535.80. Keeping this support level into consideration lets further breakdown AXISBANK into lower time frames to find a trading setup.

AXISBANK Quarterly Time Frame Candlestick Charts Dec 2019

So in the quarterly time frame candlestick chart of AXISBANK, a big red candle has formed during the previous quarter. It’s a kind of maybe a profit booking that happened and we are currently testing the support levels which we have marked on the halfyearly time frame charts.

AXISBANK Quarterly Chart Dec 2019- currently testing support levels

So a better way to trade AXISBANK would be to draw a Fibonacci retracement and mark the 50% and 61.8% retracement level in these quarterly charts. If the crucial Fibonacci retracement price level of 50% and 61.8% matches or coincides with the support level that we have marked on halfyearly charts, it can be a strong support level to enter a buying setup when it AXISBANK stock price approaches these levels. So in the below candlestick chart image, you can see how fib retracement levels coincide with halfyearly time frame support levels.

AXISBANK Quarterly Chart Dec 2019- fibonacci retracement levels

The 50% and 61.8 fib retracement levels for AXISBANK as per the quarterly candlestick charts are 597.25 and 542.85. I would like to wait for AXISBANK to reach these levels and then get a target price based on Fibonacci extension levels. We used Fibonacci extension targets for our ASIANPAINT and ADANIPORTS analysis also earlier this month(Dec 2019).

So this is how I will be trading AXISBANK in the near future. But let’s take a quick look at monthly and weekly time frame charts of AXISBANK before the conclusion.

AXISBANK Monthly Time Frame Candlestick Charts Dec 2019

As per the monthly chart of AXISBANK, you don’t have a good trading setup but we can see clearly from the below charts that the previous resistance became support level is being tested in AXISBANK. But, as we discussed above we have to wait till we find a good long trade setup in AXISBANK. Now let’s look at the weekly chart of AXISBANK.

AXISBANK Monthly Chart Dec 2019

AXISBANK Weekly Time Frame Candlestick Charts Dec 2019

In the weekly chart of AXISBANK, we can see the downtrend in progress and again the support levels will be tested in the upcoming days. So a much better way to trade long in AXISBANK would be to wait for it to retrace back to the 50-61.8 % fib retracement levels and buy it cheaply. For aggressive traders, there is also a counter trade set up i.e a short selling opportunity in AXISBANK.

Short Selling Opportunity In AXISBANK Weekly Time Frame Dec 2019 Candlestick Chart

A downtrend is in progress in weekly charts of AXISBANK and you can see the trigger of Fibonacci retracement trade from below charts.

AXISBANK Weekly Chart Dec 2019-fibonacci retracement levels and selling setup

Prices of AXISBANK stock touched 61.8 % fib levels of 749.40 last week and this week closed below 50% fib retracement levels of 725.20. This is a short trade trigger in AXISBANK. But to trade this setup, let’s look at the target price levels using 100 % levels of fibonacci extensions.

AXISBANK Weekly Chart Dec 2019-fibonacci extension targets for selling.

100 % levels of Fibonacci extensions will be the target for this short sell trade on AXISBANK i.e. 558.65 as seen in the above chart. The last step to ensure the quality of this short trade is to look at the risk-reward ratio on this trade. So below you can see the risk-reward of 3.50 on this short trade. Any trade setup with a risk-reward ratio of more than 3 is considered good.

I have taken the target level slightly above the 100 % Fibonacci extension levels i.e. 567.25. So this trade is suitable for future contracts of AXISBANK.

Conclusion on AXISBANK for Dec 2019

AXISBANK stock has performed quite well as compared with its peers. So if you are looking to include AXISBANK stock in your portfolio, use the above shown technical analysis and do your own due diligence before taking AXISBANK. It’s a wait to buy setup in AXISBANK for now.

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