If tomorrow, 11-08-2021, it takes support from the trendline or breakout this trendline then it will be a quick buy trade.
Safe buy trade will be above 430 level breakout with RSI trendline breakout. If 430 levels breakout but RSI trendline still remains below trendline then better to wait.
Below is the chart on Daily Time frame. As you can see it has breakout kind of rounding bottom and now it is testing the breakout level of 425. If it remains and takes support from 425 then for positional trade it will be good buy entry. And it it closes above 436 level then it will be considered as a reversal of downtrend.
--------------------------------------------------------- Hope I made it simple to understand the levels and trade setup.
At this situation, I will be preferring to book loos from OTM option position and when it looks positive to go up I will take entry in Sept month ITM option.
Whenever you enter in the trade always keep SL.
saurabhbakliwal1001
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The levels are intact.. Will it be breaking 447 to reach next target.
But as far as our levels are working, we can do the trade w.r.t to price action and trade setup with levels. Better to not trade in the market with sentiments.
As soon as it breaks the 447 levels it will be bullish.
447 is working as resistance. two times recently it has faced resistance from it.
champvimal
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Excellent analysis. The price is behaving under the scope of your analysis.I agree it might consolidate between 445-450. Breaking 450 will give upward move and yes, if it goes below 430-425, we can have short trade or buy puts. Need to await price action next week.
Trading_hawk
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@champvimal, Yes exactly. need to wait for price action.
palash.329
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Because of the upper wicks formed on the daily charts, the price got rejected at higher levels. Do you see a retest at 425 coming in next week?
Thank you for your comment.
We never know what happens. As a trader we always have to play in price action on everyday, better not to go with sentiment or prediction.
But My personal opinion is that it will not come down to retest 425 level again.
I see there might be a bit of consolidation between 445-450 range and then it will break 450 level in coming days.
On 1hour time frame 21MA has crossed above 50MA and on daily time frame 21 DMA had crossed above 50DMA on 26 July 2021.
And on 15min time frame it has been taking support from 50MA.
But let's see how price action works on Monday.
palash.329
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@Trading_hawk, thanks for your view I was thinking to enter into a trade at 425-430 levels as the rally has been continuing for long and correction is mandatory. Let's see how it works. Thanks again!