USDINR on Weekly Time frame has reached channel resistance marked in Blue parallel line
at this channel resistance, on daily timeframe it has shown us a hanging man ( hammer ) type candle ,
the low of this candle is also taken down by the big bearish candle.
Now this all has happened at the previous resistance level and this bearish engulf ( hammer + big bearish candle) has taken down
low of the bullish breakout candle too confirming fake breakout. [ Supportive indicators - Stochastic Negative Crossover ]
Now, as per this price action any bounce is a Sell with Stop loss high of the hammer candle (77.150)
We can also see Bearish Divergence with RSI .
View : Neutral to Short with target 75.5
Counter view : if the high of the hammer is broken out, then bullish momentum continues, hence, continuing the view given in my previous post. Please check out.
Strategy that can be applied :
Bear Call Spread - Buy 77.25 CE Sell 77 CE (Buy OTM Sell ATM/ ITM )
OR
Call Ratio Back Spread Buy twice of the lots of 76.5 PE and Sell 76.75 PE (Sell one lot of ITM , Buy two lots of OTM)
Few things to know about this spread are below :-
* Unlimited profit if the market goes down
* Limited profit if market goes up
* Predefined loss if the market stays within a range
at this channel resistance, on daily timeframe it has shown us a hanging man ( hammer ) type candle ,
the low of this candle is also taken down by the big bearish candle.
Now this all has happened at the previous resistance level and this bearish engulf ( hammer + big bearish candle) has taken down
low of the bullish breakout candle too confirming fake breakout. [ Supportive indicators - Stochastic Negative Crossover ]
Now, as per this price action any bounce is a Sell with Stop loss high of the hammer candle (77.150)
We can also see Bearish Divergence with RSI .
View : Neutral to Short with target 75.5
Counter view : if the high of the hammer is broken out, then bullish momentum continues, hence, continuing the view given in my previous post. Please check out.
Strategy that can be applied :
Bear Call Spread - Buy 77.25 CE Sell 77 CE (Buy OTM Sell ATM/ ITM )
OR
Call Ratio Back Spread Buy twice of the lots of 76.5 PE and Sell 76.75 PE (Sell one lot of ITM , Buy two lots of OTM)
Few things to know about this spread are below :-
* Unlimited profit if the market goes down
* Limited profit if market goes up
* Predefined loss if the market stays within a range