Maruti: A Potential Setup

Maruti has been moving in an uptrend channel. Currently its in consolidation phase on this smaller time frame where price drifted down to 5885 zone. It may retest this level again before breaking out of the trend line for a target of 6025-6050.

1. Let the price settle down in the 5885 zone or lower before taking trade.
2. If price opens with a gap above trend line, wait for pullback to trend line and then take trade.

This is a short term setup and should be complete in a day or two.
Manage your risk before taking this trade.

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Regards

Comment:

In order to be successful in trading we need to shun the habit of thinking in terms of money. We have to develop the habit of thinking in terms of setups. If u find a good setup in line with market context, just go for it.

I know 100 points are less in a 6000 rs. stock. But u will not be able to grab 100 points unless you know where you should take the trade.

This trade worked as per scenario 2. It opened gapup above the trendline, then pulled back to the trendline and formed a pinbar. I have grabbed 73 points for 2/3rd position with stop for the rest at breakeven.

Trade closed: target reached