Coal India buy at 134 stop loss 129. 134 is a major support. 140 is a resistance. If it break 140 next target would be 145-150. If it breaks 150 the major resistance we can see a rally of 10-15%. Go for a positional trade. Follow strict stop loss. Because of high volatility you may use trailing stop loss too.
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Tarun_Kumar98
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@amanagarwal2714, Reason for 129 Stop Loss? I think Stop Loss should be 132, just below the previous accumulation.
And now all the previous support will act as resistance, which are 137.50, 139.50, 144.
Even if the price starts going up, there will be selling pressure, so the movement will be slow.
Better to wait till all the selling pressure is taken out.
Opening long position at current price is not recommended.
amanagarwal2714
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@Tarun_Kumar98, the reason for 129 stop loss is because of couple of reasons.
1) coal India started rally from 122 and it faced a resistance at 150 as I said earlier. So if you go through Fibonacci level 61.8 is 129. And 61.8 acts a trending changing level. If a stock break 61.8 level trend changes.
2) and you said 132 should be stop loss just below accumulation level. But there is high volatility and 61.8 level is 3 rupees below accumulation level so 129 as a stop loss will not be triggered easily. We may see demand near 129-130. So I said 129 as a stop loss.
Today's low was 130 and stock closed at 132 so you can take 132 as closing stop loss but it would be risky if stock break 129 in intraday.
Happy trading 😁
1) If we draw Fibonacci from 122 to 150, 61.8% retracement level comes at 132.70 and not 129.
2) Stock travels from once place of high volume to next place of high volume, and other important levels. And next such level is 128 which was previous resistance, and is exactly 78.6% retracement.
3) So if the stock is crossing 132, most likely it will reach 128. So no point giving extra room.
4) Not saying that what you are telling can't happen, but it is less likely.
amanagarwal2714
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@Tarun_Kumar98, oh I mistook 61.8 and 78.6. And by the way which tool did you use to draw volumes near accumulation zone? Are you there on Instagram?
For any help or tips email me amanagarwal2714@gmail.com