I am short on ICICI bank for the following reasons
- ABC pattern with C still has 2 more waves to go.
- The stock is trading in a channel which implies that there is an upper bound which will cause the stock to reverse if the stock goes back up. (if i had more capital could consider holding it to take advance of the upperbound) At this point really we are looking for a 1:1 risk-reward situation more or less as the stock as made a big more already.
- BankNifty is in a resistance zone where a breakout below 18980 could mean that there is more correction coming to the market. The next support is 18565.
- The risk reward of 1.43 is not hot but will do.
- Expiry is 1 week away so there is a good chance of some more correction.
Trade closed: target reached:
target was reached on 11.28 however there is another shorting opportunity coming when the stock reaches the upper bank. The markets should go higher by 200 points now, i am wondering if this would be enough.
