DLF
This pattern occurs when two green days appear with equal closes in an uptrend. It might indicate a short term top has been reached.
- A new high was made today but there was no follow through buying, which bought it back to previous day's close.
- Interestingly this has happened near the high made in March 2021
- It could be a case of a good resistance price.
Explaining the pattern:
- The stock has been higher, as evidenced by strong green candle on 18th July (previous day).
- The next day, the stock opens lower but then it recovers back, tests the previous day's high but eventually closes at the same / similar price as previous day. This is possibly an indicative of short term resistance and may cause much concern with the bulls.
Entry can be considered when midpoint of previous day's green candle is broken.
SL can be kept at the highest point of last 2 trading sessions
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- the last 2 days F&O volume has been the highest in this series and is almost 3 times the average volume of previous 16 trading sessions
- however the Open Interest has not increased at all.
Which prima facie, suggests change of hands, rather than fresh buying interest.
F&O strategy for the given set up
Consider selling July expiry 340 Call option between 5 - 7.5
Closing price is 6.05
If selling at 5, The strategy will have a max profit potential of Rs 16500/- per lot till 29 July.
More importantly, it would have an inbuilt loss protection for a rise up to 345 till expiry.
Trust you find the overall analysis useful.
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This pattern occurs when two green days appear with equal closes in an uptrend. It might indicate a short term top has been reached.
- A new high was made today but there was no follow through buying, which bought it back to previous day's close.
- Interestingly this has happened near the high made in March 2021
- It could be a case of a good resistance price.
Explaining the pattern:
- The stock has been higher, as evidenced by strong green candle on 18th July (previous day).
- The next day, the stock opens lower but then it recovers back, tests the previous day's high but eventually closes at the same / similar price as previous day. This is possibly an indicative of short term resistance and may cause much concern with the bulls.
Entry can be considered when midpoint of previous day's green candle is broken.
SL can be kept at the highest point of last 2 trading sessions
________________________________________________________________________________________________________
- the last 2 days F&O volume has been the highest in this series and is almost 3 times the average volume of previous 16 trading sessions
- however the Open Interest has not increased at all.
Which prima facie, suggests change of hands, rather than fresh buying interest.
F&O strategy for the given set up
Consider selling July expiry 340 Call option between 5 - 7.5
Closing price is 6.05
If selling at 5, The strategy will have a max profit potential of Rs 16500/- per lot till 29 July.
More importantly, it would have an inbuilt loss protection for a rise up to 345 till expiry.
Trust you find the overall analysis useful.
Like & Follow
But don't just follow me blindly
Learn to identify opportunities independently
Trade active:
DLF 340 Call option
Cmp 6.6
Sell call trade is active
Cmp 6.6
Sell call trade is active
Trade closed: target reached:
DLF 340 Call option
closed at 0.05 (sold at 6.6)
gave the desired results of max profit
closed at 0.05 (sold at 6.6)
gave the desired results of max profit
has come down from 6.6 to 3.3
Profit of Rs 10890/- per lot so far
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DLF in cash below 327 has made a low of 320.80 so far.
That is almost 2% intra day so far.
Intraday traders can consider partial profit booking and revise SL to 325 for balance to ensure profitability in trade
Happy trading....!!!🙂