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. Thanks.
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Great. I expected this other scenario where it breakouts from the pattern early, but i thought it will be a failure. Turns out they are having a run. Will wait for further more price action.
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Setup negated. It did not come to the recommended levels. But had a breakout and met all those targets.