ITC LTDShort
Popular Demand / Results : ITC Idea + Positioning Education
Updated
Hi friends,
ITC results came out on Friday.
I'd go short on ITC for 3 reasons :
1.Risk Reward is much better.
2.If the news couldn't make the stock go higher intraday, makes it more probable to go down further.
3. Volumes
And also I have drawn my lines to illustrate levels which are significant according to me.
So,
as for now, I'd go short CMP - 257.5
With a stoploss of 260-262
And immediate target of 253, and a good break below it , positional target of 230 with a trailing SL of 255 Rupees and further riding the trend until an upmove of 5 Rupees.
So, let me explain all this to make it more clear.
All of the above target points are to be taken into consideration. but actual trading will be done when the market opens, right !
So, if it gaps up above 260, we don't enter itself. Risk Reward isn't favourable, as for me,so, I wouldn't like to go long on an over extended uptrend.
But if it opens below CMP or near it, I would go short and I'd keep my SL between 260-262 according to how it moves, judging the strength of the move.
If it goes correct, that is downwards , I would watch how it behaves near 253, a clear rejection from those levels or a decisive break.
A clear rejection would be a signal to exit.
but if it breaks well, I would bring down my SL to 255 and wait for it close on intraday.
You might think, why I am not keeping any target ?
Pro traders have taught that ride your winners and cut your losers, and I believe in it.
Who are we to judge to what extent will it fall ?
Intraday done ! Now comes the turn of positional and swing traders,
as mentioned, you should trail your stop loss by 2% or % Rupees for this stock.
That is,
suppose ITC goes to 245, should you hold or book ?
suppose it goes to 240, should you hold or book ?
This question always remains.
The answer to this according to my style is,
keep holding until it reverses 2% or 5 Rupees in this case.
By this, what is happening is, we are allowing ourselves to ride a strong trend, and get ourselves out when it gets weaker.
We ride the car until it gets slower and starts reversing ;)
That's all for today.
This was the weekend educational post + popular demand idea on how to trade ITC.
I hope I was able to convey how I manage my positions.
and I hope you benefit from it and gain knowledge.
Regards.
Happy Trading !!!!
Yours sincerely,
Dravya Raj.
ITC results came out on Friday.
I'd go short on ITC for 3 reasons :
1.Risk Reward is much better.
2.If the news couldn't make the stock go higher intraday, makes it more probable to go down further.
3. Volumes
And also I have drawn my lines to illustrate levels which are significant according to me.
So,
as for now, I'd go short CMP - 257.5
With a stoploss of 260-262
And immediate target of 253, and a good break below it , positional target of 230 with a trailing SL of 255 Rupees and further riding the trend until an upmove of 5 Rupees.
So, let me explain all this to make it more clear.
All of the above target points are to be taken into consideration. but actual trading will be done when the market opens, right !
So, if it gaps up above 260, we don't enter itself. Risk Reward isn't favourable, as for me,so, I wouldn't like to go long on an over extended uptrend.
But if it opens below CMP or near it, I would go short and I'd keep my SL between 260-262 according to how it moves, judging the strength of the move.
If it goes correct, that is downwards , I would watch how it behaves near 253, a clear rejection from those levels or a decisive break.
A clear rejection would be a signal to exit.
but if it breaks well, I would bring down my SL to 255 and wait for it close on intraday.
You might think, why I am not keeping any target ?
Pro traders have taught that ride your winners and cut your losers, and I believe in it.
Who are we to judge to what extent will it fall ?
Intraday done ! Now comes the turn of positional and swing traders,
as mentioned, you should trail your stop loss by 2% or % Rupees for this stock.
That is,
suppose ITC goes to 245, should you hold or book ?
suppose it goes to 240, should you hold or book ?
This question always remains.
The answer to this according to my style is,
keep holding until it reverses 2% or 5 Rupees in this case.
By this, what is happening is, we are allowing ourselves to ride a strong trend, and get ourselves out when it gets weaker.
We ride the car until it gets slower and starts reversing ;)
That's all for today.
This was the weekend educational post + popular demand idea on how to trade ITC.
I hope I was able to convey how I manage my positions.
and I hope you benefit from it and gain knowledge.
Regards.
Happy Trading !!!!
Yours sincerely,
Dravya Raj.
Trade active
As it gapped up above our entry point, it doesn't tell us to enter. We got an entry later but with no follow through. One should exit with breakeven, and we'll be looking at it for another day. Exiting to save us from exposure of gap up risk. Will be updated.Order cancelled
No entering short today. Better to look for other opportunities. Not looking at this now. Closed.Note
We got saved by not shorting, ITC up even in down market. Can rise but Im not going long.Thanks.
Note
Learned newer things. According to it, this is a clear buy call. Will apply the newer concept in subsequent charts. Thanks.
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