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  • Aug 1, 2022 - Auto Stocks Start August With a Big Bang. Which Stocks Should You Trade?

Auto Stocks Start August With a Big Bang. Which Stocks Should You Trade?

Aug 1, 2022

After gaining 7.2% in July 2022, the bulls are going all-in on auto stocks. The auto index started the month of August with a big bang. It gained 3% in early trade today.

From the entire auto chain, two-wheelers auto stocks look promising. They offer the best bullish structure on the charts.

Equal Weighted Two-Wheelers (2W) Index

 

We have created an Equal Weighted two-wheelers (2W) index (EW2WI). It's our proprietary index.

The resistance has turned into a support (black horizontal lines). The higher high - higher low, a bullish structure on index, offers an excellent buying opportunity for traders and investors.

The Golden Cross bullish pattern is the sign of a long-term bullish trend. Technically, the setup is very bullish. Every dip seems to be a buying opportunity.

In fact, the break above the yellow dotted line can accelerate the bullish momentum.

These two wheeler stocks are the fastest growing companies in the auto sector.

Investors should be selective in this space because India's best two wheeler stocks are already powering ahead.

Choose the best fundamentally strong stocks which can be multibagger stocks for 2025.

At present, the BSE auto index is trading higher by 2.6% at 29,500 level.

If you're interested in being part of my charting journey as I share how to create wealth from profitable trade setups, join my telegram channel - Fast Profits Daily.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...

Brijesh Bhatia

Brijesh Bhatia Research Analyst and expert chartist, is the editor of Alpha Wave Profits. Fully committed to his craft, Brijesh has mastered the art of making money by trading using technical analysis. Brijesh has an MBA from ICFAI and 16 years of experience in India's financial markets. He began his career on Dalal Street as commodities dealer and it wasn't long before he developed his own unique trading system. Brijesh worked on his trading system until it could be expected to deliver 5 units of return for every unit of risk.

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