Hi Traders & Investors, In my last post of this stock what I mentioned is quoting for your consideration " " those who want to enter long they should consider a red dotted line as sl and get long side position till that dotted line is breached." you can see in two days bnf gave big volatile moves but the price did not even come closer to the red dotted line. Today it breached green dotted line but not taken out. Now the scenario is little different Those who are long can belong till the pink solid line is taken out on 30 min timeframe. And those who want fresh entry in the long side should wait to go long when green dotted line and pink dotted trendline both are taken out on 30 min timeframe. ". You can see the price fulfilled the condition for long side trades. And the price reached near red upper line. Those who remained long would have earned good profit in this positional long trade. Investors this stock is in the accumulation stage If you get near blue and pink zone on lower side can add in the portfolio for at least one year how will get 300 level till that time.
Trade for next week.
1. See I circle a bearish engulfing pattern in green. This is a bearish pattern which gives signal who are positional long should cover their positions. Since it is not activated till yet so one should wait to go short once activated. In fact, if the price close below the big bearish candle low on a closing basis then the pattern will get activated.
2. Green dotted support zone can provide support so that pattern becomes invalid. If that happens then one should take long with the stop loss of lower band of the green dotted zone with the target of the upper red zone.
3. On the contrary short side, trade is very tricky I will not suggest shorting this stock because the risk-reward ratio will not be matched. The blue lower end will be the target in the coming days if yellow trend line is taken out on 4hr time frame. As the stock is going in range-bound trade by satisfying lower conditions . so trapping will be seen both sides. No chances of good reward until you book quickly.
4. last but not least upper red zone is taken out in 4 hr time frame then uptrend will resume. So trading in this stock will be difficult in the short side except for one two days. For your better understanding see fig below of the last update and compare it with the current one. The rest market will decide. YOGESH VATS
Disclaimer:- All positions should be taken with consultation from your financial adviser. This work is for educational purposes.
@yvatsji , your heading also -"SBI WILL BE IN RANGE FOR COMING DAYS SEE HOW" is quite precise (apart from your analysis :)) . It has been range bound from last few sessions.
Do you think initiating a long make sense now or wait till 200 has been crossed as per your charts.
mkharish
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As always, you are awesome! I am learning from your each post. I have understood the support, resistance and zones but wondering how did you draw the yellow trend line? could you please explain? thanks
yvatsji
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@mkharish, Thanks for appreciating my work. yellow line logic is already explained in one of the comment boxes.
mkharish
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@yvatsji, Sir, I am asking how did you draw trend line using only one candle, which you can only do? if you have explained in any "other" message, not here, pl. let me know. I will check it. Thanks for replying,
sanketsudan
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You have been bullish on SBI technically. Given its fall and low price that is in consonance. Surprisingly, SBI hasn't attracted volumes despite its low price. Better to wait till demand picks up.
rajiv_n
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@yvatsji Thank you for the detail analysis. One question please - is there a time frame (or what to watch) around Green dotted support zone , how one knows the support will be provided near Green dotted line or its a down trend.
yvatsji
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@rajiv_n, regarding green, dotted support you should follow 4hr hour candle how it reacts and what sort of formation is that.what psychology of candle is. Next candle fulfils the taken-out condition or not. Then the decision can be taken. Both criteria provide the next plan of action. Always use a logic for taking any entry or exit.
rajiv_n
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@yvatsji, Thank you very much for a clear explanation
Do you think initiating a long make sense now or wait till 200 has been crossed as per your charts.