A breakout is expected from the falling wedge
pattern which is under construction for past 2 months. Right now CMP is 498 and still the price has not yet found its buyers for the breakout to happen upside. Hence expecting the price to fall further till 470-480 which is considered to be a major support. For now we can go short in this trade for a small scalp. Once it gets to 470 zone we can expected the buyers to jump in. If the 470 level fails to hold then we may see the prices reaching 450 levels which is a very strong support area
. Based on these price action analysis, there are two potential setups.
Setup 1 : Short
Entry - Short @ 500 area or below 495 if it shows weakness
SL - 505
T1 - 490
T2 - 480
T3 - 475
Setup 2 : Long
Entry - Can take up long position @ 470-480 based on reversal pattern
SL - 440
T1 - 500
T2 - 520
T3 - 550
If setup 2 fails to hold, then we may look to go long from 450 levels if it shows some reversal.
For educational purpose.