Simple Trade Setup | SUNPHARMA | 20-12-2021 [INTRADAY]

SUNPHARMA

Observations:

1) On 1day time frame, it is trading below 100DMA but it took support from 21DMA.
Since short term average is below the long term averange, it is a sign of bearish.
But if it managed to trade above 100DMA then it will be again a buy trade.

21DMA is placed at 763.35 level and 100DMA is placed at 783.82.

We can see that level range of 760 is immediate suppport and level range of 785 is immediate resistace.

Please refer below chart : 1day Time Frame.

2) On 1 day time frame, we can see that it is trading at the bottom trendline of the parallel channel. If it maintain to keep the support from this trendline then we can see an upmove till middle trendline of parallel channel.
On breakdown of this bottom trendline it will be bearish.

Please refer below chart : 1day Time Frame.

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Trade Setup for Date: 20-12-2021

1) Don't Jump in to trade at the beginning of the market. Let it get settle for 15-20min first and judge the price action.

2) Everything is mentioned on the chart. I hope it is easy to understand.

3) All the levels will work as support, resistance, entry and exit w.r.t price action near that level.

4) Avoid gap up or gap down chase. Wait and trade between levels.

Please refer below chart for levels.

Hope I made it easy to understand it.

Do comment your doubt or suggestion.

Note: Trade with Strict SL. It may or may not hit all the levels. So one can book profit / loss at respective level considering how price action works near that level.