daddycool123

CUMMINSIND-Channel breakout or failure?

NSE:CUMMINSIND   CUMMINS INDIA
Cumminsind has given a close at 329.7 after a strong supply zone at 343.5.The trendline support lies at 320/21 with resistance zone still entact at 343.5.A move above this will open the gates till 375 and 406.a close below 320 may lead testing of earlier lows of 280.

Comments

hi....i made an exact same channel..however the red candles from 14-18 may have enormous volumes and the green ones proceeding have very low volumes...so could it be a bull trap?
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daddycool123 jasdeepsinngh
@jasdeepsinngh, depends on the how the buyers absorb the supply zone at 344/45 if we have a strong green candle then it will be a good one to ride along however one needs to be cautious with a bull trap which can be a low volume green candle showing fake breakout near resistance of 343/45
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daddycool123 jasdeepsinngh
@jasdeepsinngh, currently at this stage it would be difficult to say its a bull trap because it is already in a bearish trend and is undergoing a retracement so volumes will be low but near resistance what is the strength of candle will reflect a breakout or a failure of current small retracement.
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jasdeepsinngh daddycool123
@daddycool123, thanks!! that was helpful
Reply
daddycool123 jasdeepsinngh
@jasdeepsinngh, welcome bro
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