k314

VEDL buy setup - Risky counter trend trade

Long
NSE:VEDL   VEDANTA LTD
Buy VEDL above 144

T1: 151
T2: 158
T3: 167

SL: 139
Comment: 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.

Comment: Trade not yet triggered
Comment: Please do NOT go long now as the swing low had broken on Feb 01

Comment: VEDL re-entered above the trendline support

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

Comments

Entered at 145 yesterday
Reply
k314 yadurajshekhawat
@yadurajshekhawat, Clearly mentioned to avoid going long as the swing low got broken.
Now that you entered please maintain a SL of 139 with targets of 151-158. Good luck with this trade
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Entered at 144.90 today..
Reply
k314 AvinashGoyal
@AvinashGoyal, Please do NOT go long now as the swing low had broken on Feb 01

Reply
k314 AvinashGoyal
@AvinashGoyal, it could be risky hence maintain a strict SL of 139 exit completely at 151/158. Do not wait for 167
Reply
@k314, Ok thanks...
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