COUNTER-TREND IDEA COAL INDIA - LONG
Updated
Three pushes down in Coal India setting up a Bullish wedge reversal ( 1, 2 and 3 ) , a micro wedge ( in Red marked 1, 2 and 3 ) with trend channel line overshoot ( Red 3 ) and a strong breakout of the trend line with 3 strong bull trend bars , all indicating a temporary reversal of trend for at least 2 moves up .
Since it is a counter trend trade risk 0.25% ( Ex. 250 Rs for 1 lakh capital ) of your capital at the present price and another 0.25% at 2nd entry like Double bottom , higher low or test of the trend line .
1st target is the top of the wedge as shown . Will update further entries and stop loss as further price action unfolds.
Entry : 233
SL : 211.35
Target : 254
Trade Management : Buy 10 shares for every 1 lakh for now and another 10 shares at 2nd entry ( Risk : Reward is 1:1 )
Since it is a counter trend trade risk 0.25% ( Ex. 250 Rs for 1 lakh capital ) of your capital at the present price and another 0.25% at 2nd entry like Double bottom , higher low or test of the trend line .
1st target is the top of the wedge as shown . Will update further entries and stop loss as further price action unfolds.
Entry : 233
SL : 211.35
Target : 254
Trade Management : Buy 10 shares for every 1 lakh for now and another 10 shares at 2nd entry ( Risk : Reward is 1:1 )
Trade closed: target reached
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