COAL INDIA LTDLong
Coal India: Channel Trade potential
Updated
Coal India
Closing Price 129
Observation
- Stock is trading in a blue channel
- currently at lower end of the channel
- we observe a Bullish Harami candlestick pattern at lower end of the channel
- convergence of 50 day EMA and 200 day EMA around 140
- 136-142 is a crucial band for the stock
- important for the stock to give a weekly close above the red dash trendline to increase the probability of up movement
View
Target for the current set up:-
Short term 136 / 142
Medium term 160
Long term 196-220
Stop Loss
Short term Close below 125
Medium term Weekly Close below 119
At current levels, and based on the other technical indicators and pattern, the stock provides a good risk::reward ratio to go long
F&O strategy
Sell 29 April 2021 125 Put option
Buy 29 April 2021 120 Put option
The strategy provides roughly 13% of reward potential on Margin requirement till 29 April 2021
Take care & safe trading...!!!
Disclaimer:
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be
Closing Price 129
Observation
- Stock is trading in a blue channel
- currently at lower end of the channel
- we observe a Bullish Harami candlestick pattern at lower end of the channel
- convergence of 50 day EMA and 200 day EMA around 140
- 136-142 is a crucial band for the stock
- important for the stock to give a weekly close above the red dash trendline to increase the probability of up movement
View
Target for the current set up:-
Short term 136 / 142
Medium term 160
Long term 196-220
Stop Loss
Short term Close below 125
Medium term Weekly Close below 119
At current levels, and based on the other technical indicators and pattern, the stock provides a good risk::reward ratio to go long
F&O strategy
Sell 29 April 2021 125 Put option
Buy 29 April 2021 120 Put option
The strategy provides roughly 13% of reward potential on Margin requirement till 29 April 2021
Take care & safe trading...!!!
Disclaimer:
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be
Trade closed: target reached
Our Options strategy in Coal India gives us the desired result of 13% ROIThis despite the stock being sideways and is down by a Rupee ( we initiated trade when stock was at 129 and cmp is 128)
This is where strategies make a difference....!!!
It increases your chances of winning trades
Hope you guys enjoyed the trade.
Happy trading....!!!😊
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Disclaimer
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