🔰 MY thought process :
⭐A broadening pattern on the Daily chart :) meeting with fibo extension giving a perfect round number of 1300 which seems to be achievable but in a while, kinda positional setup for me :)
🔰Am I taking this trade now: No---Reason: Already in the trades of Naukri and PPL as posted last time :) also took a small position in Coal India today...
L&T Finance | Short Below 128 | Stop-loss 134 | Target 105 |
Risk/Reward 1:4
It's a broadening top formation. And pretty much like what the textbook describes. Be careful because nice-looking patterns are rarely successful.
If price closes above the upper trendline before breaking 128 then the trading setup becomes invalid.
The Stock has nicely formed the "Descending Broadening Formation" which could be used for trading. How to trade it : if it breaks the upper horizontal line and stay there for some period one can go long. If it gives false breakout and come back immediately to the the upper line one can short the stock. Good Luck
The pattern is self explanatory one can short now with small stop loss and take the ride till the lower level or whenever feels it is good profit. Risk to reward could be good.
There is a possibility to trade Broadening top pattern. RSI is forming divergence also confirming weakness in the stock. Shorting now with Stop Loss just above the high made recently.
