Ashok Leyland October Series

Look at the current formation of candles. Let’s think as a seller as we want to forcefully buy it. If I am a seller I will have the stop loss placed each day mostly at the previous day’s high.

Similarly, if I am a buyer, I will put my stop loss placed each day mostly at the previous day’s low.

So thinking psychologically, all longs have already exited on the day when it fell massively or we can say did a flash crack. But if you follow the candle marked here (the green one) broke the high of last day which was a red candle.

It means shorters will book the profit too. Rest candle fell into cards. With volume decreased, there is no money inflow into the stock. So there is no breakout or breakdown.

But time compression deals with impatience. Either one of them has to happen and it will be very strong considering the timeline of few days of inside candles.

It sums up to -

Short if it breaks the low of the previous day with a stop loss at the previous day's high.
Long if it breaks the high of the previous day with a stop loss at the previous day's low.


Support and Resistance for October Series-

Rising crude oil means the negative effect on the auto industry; that’s why the upper resistance of 135 is anyways staying strong even before the NIFTY meltdown.

105, we can tell is acting as support.

Comment:

Short triggered at 119.8. The current updated trailing stop loss is 122.

Trade closed: target reached:

The support is touched.

Trade active:

The buy trade will trigger tomorrow. Buy tomorrow at 110.85 with a stop loss at 104.8

Comment:

Update the stop loss to 111.

Comment:

Update the stop loss to 112.5 and please follow this chart from now on