Bajaj Electricals has been trading in a sideways pattern for the past 10 months, as shown in the chart. In May, it broke out of this pattern and started moving in a upward trend.
If we zoom in and look at a smaller time frame, we can see that another sideways pattern has formed within the larger pattern.
We have two options: we can wait for the price to break out in multiple time frames, or we can make a smart move by taking a trade when the price retests its support level around 1223.
We can consider waiting for the price to retrace and then take a trade, aiming for a potential gain of 7%. To manage risk, we can place a small stop loss. Why small Stop Loss ? Because trade have all the possibilities to fall further if it breaks it support and can come all the way to its Bigger support level.
If it breaks out in a multi time frame, I will update in trading hour.
If we zoom in and look at a smaller time frame, we can see that another sideways pattern has formed within the larger pattern.
We have two options: we can wait for the price to break out in multiple time frames, or we can make a smart move by taking a trade when the price retests its support level around 1223.
We can consider waiting for the price to retrace and then take a trade, aiming for a potential gain of 7%. To manage risk, we can place a small stop loss. Why small Stop Loss ? Because trade have all the possibilities to fall further if it breaks it support and can come all the way to its Bigger support level.
If it breaks out in a multi time frame, I will update in trading hour.
Trade active:
Wow! This was really a Smart one. The price has followed our anticipated path perfectly. It retraced to the support level and then, boom! It hit our first target in just one day.
We have the option to book partial profits now. Currently, the price is trading above the resistance line, and if it can sustain this level, we can expect to reach the next target soon.
We have the option to book partial profits now. Currently, the price is trading above the resistance line, and if it can sustain this level, we can expect to reach the next target soon.