(This analysis and prices mentioned are of YESBANK 27th SEPTEMBER FUTURES though the charts and prices in this post are YESBANK SPOT. Make necessary adjustments depending on the relevant market. On August 31st September futures closed at 345.9 and Spot closing price was 343.5)
Long on YESBANK September futures @ 242
Reasons for going long:
After a 6-7% fall in one day it should correct upwards... I hope...
Today's drop brought it down to the 50% retracement of its rise from 285 (23rd March) to the high of 404 (20th August) which can be seen on the weekly chart on the left
The weekly candle closing price is resting on the Kijun Sen line and the low bounced off the top of the Ichimoku Cloud
Daily candle low (31st August) was just above the 200 Simple Moving Average - can be seen as a yellow dotted line on the Daily chart on the right
The 1 hr chart shows a bullish cross over just starting on the 7-2 period Random Walk Index
Current price is in the range of 330-345 which provided support during its consolidation before it took off on 5th July
Maximum Call OI addition (on 31 August) is at strike price of 370 followed by 360. Maximum number of Call contracts are at 400 strike.
Maximum Put OI addition is at 350 so I guess the expectation is definitely of a rise
In the short term: SL could be placed at just below 323 with Targets of 355/361/367
357 is the 50MA and 360 is the bottom of the Ichimoku Cloud. These price levels could provide resistance in the short term.
Longer term targets could be 380/385/404/422
Long on YESBANK September futures @ 242
Reasons for going long:
After a 6-7% fall in one day it should correct upwards... I hope...
Today's drop brought it down to the 50% retracement of its rise from 285 (23rd March) to the high of 404 (20th August) which can be seen on the weekly chart on the left
The weekly candle closing price is resting on the Kijun Sen line and the low bounced off the top of the Ichimoku Cloud
Daily candle low (31st August) was just above the 200 Simple Moving Average - can be seen as a yellow dotted line on the Daily chart on the right
The 1 hr chart shows a bullish cross over just starting on the 7-2 period Random Walk Index
Current price is in the range of 330-345 which provided support during its consolidation before it took off on 5th July
Maximum Call OI addition (on 31 August) is at strike price of 370 followed by 360. Maximum number of Call contracts are at 400 strike.
Maximum Put OI addition is at 350 so I guess the expectation is definitely of a rise
In the short term: SL could be placed at just below 323 with Targets of 355/361/367
357 is the 50MA and 360 is the bottom of the Ichimoku Cloud. These price levels could provide resistance in the short term.
Longer term targets could be 380/385/404/422
Trade active:
Short term targets for Sep futures: 353/355/358/360/367/370
Trade closed manually:
Closed @ 349 (Sep futures). Small profit per lot. No movement today... will go long again when momentum picks up a bit.
Comment:
Yes seems to be developing a bullish engulfing candle. Long again @342
Trade active:
Hoping for target of 356-359 today
Comment:
Sep futures