ZEE Entertainment Limited (ZEEL) has taken a breather near a support level price has shown double bottom. All three RSIDIV indicators are showing divergence. Today morning first candle is above 172 crossing Smoothed HA. Seems a reversal confirmation to me. It has also crossed 50 MA and if holds well there might me recovery/up move till 185 level. However we will bet for a safe target of 177 above with a stoploss of 168. Risk reward doesn’t look good here.
Alternatively, we can take a option strategy by selling 165PE and buying 145 PE down side. In this strategy, I will benefit if the stock doesn’t go below 165 level. But chances of winning are good and we will exit the trade as soon as we are into 50% of max profit.
Follow Up update on 06 Sep: