Price has failed to test the earlier extreme, thus forming a double top. Now on the second run up, it formed a head and shoulder pattern indicating signs of reversal.
Scenario 1:
CMP is 497. If the prices breakdown below 491 with good volume then it will 480 which can be a small swing trade.
For short term positional , prices are expected to touch 450.
Scenario 2:
On the other hand, from the current level prices could get a small support and retrace to 510 level and then fall back on its course.
Either way the stock is expecting a correction.
Just my observation and purely for educational purpose.
THanks.
Scenario 1:
CMP is 497. If the prices breakdown below 491 with good volume then it will 480 which can be a small swing trade.
For short term positional , prices are expected to touch 450.
Scenario 2:
On the other hand, from the current level prices could get a small support and retrace to 510 level and then fall back on its course.
Either way the stock is expecting a correction.
Just my observation and purely for educational purpose.
THanks.
Trade active:
As expected prices got a little support and retraced till 509. Entered @ 506.
Now made a fall till 493.
Now made a fall till 493.
Trade closed: target reached:
A good 35 point move. Closed my position in futures @ 471.
Hence Booked half @ 490.
Trailed SL to 500 for other half.