Hi Folks ! USDINR is now seen in a crucial level near 76 * It has retraced only 38% from recent dip * Retest done at previous breakdown level which was also a support level earlier * Price also can be seen moving in a downtrend channel and now is at the upper level, having room to move downwards till the lower level * Chart pattern : If we look at this retracement as flag, we can also say that it is a flag Breakdown and may also give flag target which is 75 * Indicators : RSI & Stochastic also supporting the Bearish View analyzed with points observed and mentioned above
Contra View : If this takes a support at immediate support level 75.5 and makes a double bottom ( reversal sign ) then wait for Break out of 76 to get a target of 76.657 No trading zone - 76 to 75.5 [ may remain in range also ]
Strategy recommendation : Bear Call Spread
Plan your Trade ! Trade your Plan !
Trade closed manually
⋅
trailing SL hit for the bought CE (booked double profit on investment)
pls can you update the post considering usdinr is at 76.22 today
NeelamN
⋅
@alark123, hey there! our contra view is shown by the market, so, we are following that... and continuing the bought call and covered the call which was sold.
@NeelamN, what was the lot size you took for this trade, & risk taken ?
NeelamN
⋅
@tusthecool, I took the long trade by breaking my spread, so, my entry was actually below the Stop loss. I entered ATM 76 CE buy @ 0.2475 and ITM 75.75 CE Sell @ 0.4100, when I saw changing Price action towards 2nd half of the day, I discontinued CE sold @ average of 0.4775 with minor loss of 6750 (i.e. 0.0675 PIPS) 100 lots continued the Buy position which was bought @ 0.2475 with stop loss of previous low @ 0.2525 which was below my buying level. [ The level was 0.2950 for 76 CE when I exited CE, so, from here the SL level 0.2525 is 0.0425 PIPS which can be considered as a Stop loss which is just 4250 in value ] Reward foresighted was much bigger and worth the risk. Expectation was 0.30 but I could catch 0.2650 which is still 1:6 Risk : Reward ratio.... I hope you got your answer.
NeelamN
⋅
@NeelamN, additionally, I bought 200 lots (pyramiding) when I exited Sell position. Just for intraday purpose.