TataPower Fake Breakout on Hourly Charts. Intraday Idea 3rd May.
After reading the different views, I realized that the whole TradingView community is bullish on TataPower in weekly and monthly basis.
I am a derivatives trader, intraday and positional with futures and options.
Here, I can spot a fake breakout on hourly charts on 30th April 2021. Though, it can be due to broader market going down, but there are several other factors behind this analysis.
1. Volume - We can see a volume contraction at this current upmove. The daily volume is not looking convincing for a breakout. Moreover, in hourly charts, there are several high volume red candles over the past week.
2. Intraday analysis on 30th April 2021 - When breakout happened above 100, I was convinced of a break out. Even it broke 101 which was the high of 12th April high volume bearish day. But it could not sustain. It made a double top kind of formation at 101 and then went back to break vwap and go below 99. For the rest of the day, We didn't see any bull moves or upward spikes since then.
3. Heikinashi - HeikinAshi on 1 hour charts is also showing bearishness here. On daily charts, the Heikin Ashi candle is indicating bearishness.
How to Trade this idea?
Any trade idea can be a failure and one can be ready to tackle the reverse. So first we will protect ourselves if idea goes in reverse.
If it opens around 100, look for whats happening around 100.5 zone. If it rejects this zone in a 15 min candle, we can short it with stoploss at days high or the high of this 15 min candle.
If it opens below 99, don't short immediately, see 15 mins chart, some retracement towards 99 to 99.5 can happen. Once it forms a 15 min bearish candle after retracement, wait for it to break vwap with momentum and go short with Stoploss high of that 15 min candle.
Not convinced for a breakout upmove unless it breaks 100.5 with momentum.
PS: Always the risk only the amount that you can afford to lose in a single trade. And never remove/defer that SL. Accept the loss and move on with next trade.
Happy trading.
I am a derivatives trader, intraday and positional with futures and options.
Here, I can spot a fake breakout on hourly charts on 30th April 2021. Though, it can be due to broader market going down, but there are several other factors behind this analysis.
1. Volume - We can see a volume contraction at this current upmove. The daily volume is not looking convincing for a breakout. Moreover, in hourly charts, there are several high volume red candles over the past week.
2. Intraday analysis on 30th April 2021 - When breakout happened above 100, I was convinced of a break out. Even it broke 101 which was the high of 12th April high volume bearish day. But it could not sustain. It made a double top kind of formation at 101 and then went back to break vwap and go below 99. For the rest of the day, We didn't see any bull moves or upward spikes since then.
3. Heikinashi - HeikinAshi on 1 hour charts is also showing bearishness here. On daily charts, the Heikin Ashi candle is indicating bearishness.
How to Trade this idea?
Any trade idea can be a failure and one can be ready to tackle the reverse. So first we will protect ourselves if idea goes in reverse.
If it opens around 100, look for whats happening around 100.5 zone. If it rejects this zone in a 15 min candle, we can short it with stoploss at days high or the high of this 15 min candle.
If it opens below 99, don't short immediately, see 15 mins chart, some retracement towards 99 to 99.5 can happen. Once it forms a 15 min bearish candle after retracement, wait for it to break vwap with momentum and go short with Stoploss high of that 15 min candle.
Not convinced for a breakout upmove unless it breaks 100.5 with momentum.
PS: Always the risk only the amount that you can afford to lose in a single trade. And never remove/defer that SL. Accept the loss and move on with next trade.
Happy trading.