VEDL buy setup - Risky counter trend trade

Jan 30, 2020

Buy VEDL above 144

T1: 151
T2: 158
T3: 167

SL: 139

Jan 30, 2020

Note

Another reason why we are planning to swim against the tide is because the trendline is already broken and a move above 144 would indicate the trendline breakdown to be a fake one. Going by classic charting principles, a move after invalid pattern occurrence is usually more rewarding. Hence we can take a small risk in this counter trend trade (if entry is triggered).
If the long trade is not triggered in next couple of trading sessions we will certainly look for a good opportunity to short, i.e in the direction of trend.

Jan 31, 2020

Note

Trade not yet triggered

Feb 6, 2020

Note

Please do NOT go long now as the swing low had broken on Feb 01

Feb 6, 2020

Note

VEDL re-entered above the trendline support

Mar 6, 2020

Note

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The reason why I requested not to go long after the swing low was broken is now evident.