Trading further downtrend in TECH M through swing in PUT option
Updated
Basic Technical Analysis -
1. Scrip is in a downtrend, following a parallel channel on Daily TF.
2. Recently gave a breakdown from a long term (June'20) trendline.
3. Bounced back from higher TF (weekly) demand zone after breakdown.
4. Other marked DZ (green), SZ (red) levels are respected.
5. 2nd demand zone & approaching 200 EMA might now act as resistance in short term.
Trade a 75min supply zone b/w these two higher TF demand zones.
Options Trade -
1. ENTRY / TARGET as per spot chart - 1325 / 1275
2. SL using spot chart - 1350
3. RR - 1:2
4. Strike Price - TECHM 26 MAY 1260 PUT (little OTM having good OI)
Other considerations -
1. Select strike price & set SL according to option capital needs, your risk appetite & market sentiment at ENTRY.
2. Time based SL not needed as this trade has the possibility to get over in just few days. Still can keep 50-55% of ENTRY - SL (in spot chart) as your SL.
3. Tech Mahindra Q4FY22 earnings is on 12th May'22.
1. Scrip is in a downtrend, following a parallel channel on Daily TF.
2. Recently gave a breakdown from a long term (June'20) trendline.
3. Bounced back from higher TF (weekly) demand zone after breakdown.
4. Other marked DZ (green), SZ (red) levels are respected.
5. 2nd demand zone & approaching 200 EMA might now act as resistance in short term.
Trade a 75min supply zone b/w these two higher TF demand zones.
Options Trade -
1. ENTRY / TARGET as per spot chart - 1325 / 1275
2. SL using spot chart - 1350
3. RR - 1:2
4. Strike Price - TECHM 26 MAY 1260 PUT (little OTM having good OI)
Other considerations -
1. Select strike price & set SL according to option capital needs, your risk appetite & market sentiment at ENTRY.
2. Time based SL not needed as this trade has the possibility to get over in just few days. Still can keep 50-55% of ENTRY - SL (in spot chart) as your SL.
3. Tech Mahindra Q4FY22 earnings is on 12th May'22.
Order cancelled
Entry didn't trigger due to gap down opening & further fall within the whole week.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.