Equity-Earningz

Axisbank - Falling Wedge Breakout

Long
NSE:AXISBANK   AXIS BANK
Here's a falling wedge in the middle of an uptrend. Volume picks up on the breakout.
Price also taking support at the previous top. A classic case of Resistance becomes Support.

Long at 423 Stop at 400 Target 550.

Risk Reward 1:5

Using Covered Call.
Short Axis Bank 460 CE April @ 6.

Incase we hit Stop-loss in spot, Option will help in bringing down the cost of Stop-loss.
Remember we are in a counter-trend or rallies. So it's better to be cautious and should trail stop-loss once the position is in favor.
Trade active
Comment: Axis bank Cmp 445.

Axis April 460 CE short at 6 is now 0.

So Axis bank entry price is 423 and the stop is 400. ( 23 RS)

Risk getting lower to 17 rs. ( 23-6 )
Comment:
Trade closed: stop reached:
Trade closed: stop reached: Axis Bank Stop-loss Hit.

Stop-loss always to be placed in systems. Any single tick below the stop-loss price is an SL hit.

There is no watching and waiting in Stops. If Axis closes around 401 and you don't exit assuming that it was on a closing basis, then it's very poor trading discipline.

Nothing is more dangerous than a closing basis Stop-loss.

A gap down tomorrow and your money and risk management are doomed.

Comments

We have axis bank quarterly announcement tomorrow. will that be the reason for the stock being at 420 levels?
+2 Reply
Equity-Earningz kumaransiva1412
@kumaransiva1412, yes sir, expecting a good result tomorrow.
+1 Reply