There is a B-wave triangle which could be tracing out in Axis Bank as a possibility, we should not be adamant about the shape or become bias just looking at shapes & someone smart in the market takes our money.
I draw shapes just to give comfort & alarm me whether I am moving in right direction. There is an impulsive fall from 639 to 468 lows giving us wave A & moving in choppy & confusing move Wave B- likely can open up as a triangle which is yet to be confirmed.
Remember of trading shorts close from 530-535 zone & next it was a gap down move which rushed to 480-482 zone -Wow!
Trading Strategy
We will look to join the sell side with a bounce to the zone 490-495 & falling later below 490 with stops above 504 The bounce move will retrace 61.8% of the current fall from 504 to 479- common never make a mistake of buying as small mini bottom of 480 was broken today, we wait to see how it unfolds next to join the downside trade.
Trade closed manually
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22:31 Hrs 21st Feb2017
We expected the bounce to 490-495 but it was so sharp that it did not dip below 490 so did not trigger & even went above 504 -previous high.
Comments
SatishBoda
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@AbhishekHSinghCMT. Axis Bank is facing a resistance at 530 which is also the kjun in weekly time frame. There are previous structures at this level. Could you kindly check whether it serves to short here. Thanks.
WaveTalks
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@SatishBoda, Yes likely going below 520 & sustaining below that level can be looked for a sell but let us wait for monday price action.