Negative Divergence - My Favourite trading strategyStock is having a negative divergence - short below the green trend line for target of 1% return for couple of days and upto 3% for the week
DRREDDY
Price Action with clear picture of Volume on DRREDY: ------------------------------Price Action vs. Volume!------------------------------------
Let's talk on the left to the right side:
6th and 5th candles : wide body with normal tail and 3x volume which means buyers .
4rd Candle, Volume less compared to 5th and 6th candle and price falling: Clearly showed that something is cooking a nd till price can move up because of abnorma lity seen wi th volume. Buyers are started booking profit!!!
3rd Candle: Tail in both sides, the volume also validated and clear its was profit booking started who has bought.
2nd: Upar wicks and price closed nearby opened which indicates that sellers ready to sell if they get chance.
---> We are ready for U-turn
Closing below chart will -ve in this stock. If price dose does not closes below it... then exit is safe.
DR reddy good long trade opportunity for Next week. This stock is forming flag and pole and moving up. It is near its control line of the parallel channel. If manages to hold 3126 low, it can move 100 points from CMP or else will move down the lower value of parallel channel. Trade as per the market moves next week. Remember key level is 3126 for long and below that short.
Sell if Tail in steps this bullish stock if you have lion heart.DRREDDYS openned with Gap up and broke n line(b ). Selling above line(a) is not bad idea.
ATR 182
CMP 3386 with high
--> 3386 + 182 = 3568 R
Suppose to create tail, then resistance 3455.
Steps to sell=:
@3434-3466
next @3568
LONG @DRREDDYSupport test is good.
Drreddy is good to go up once again after a sharp reversal from earlier breakout.
STOPLOSS - Bottom of support area
TARGET - As pleases. look into SHORT@ICICIBANK to set targets
DRREDDY LONG VIEWDAILY CHART - SPINNING TOP CANDLE, WITH DECREASING VOLUME FROM PAST 4 DAYS.HUGE FALL IN NIFTY BUT IT DIDNOT FALL, MAY BOUNCE BACK UPPER SIDE.
****INTRADAY***
long above 3135, SL 3115
Target 3150/3170
short below 3112, SL 3135
Target 3100/3052
WATCHOUT @DRREDDYInconclusive but good triangle formed.
Watch out for the support and resistance zone.
Look to go long only if it breaks the resistance zone.
DrReddys Short ViewPrice currently Ranging.
Breakout/Breakdown In view, Mostly breakdown.
Long Above 3045, SL3030,
Target 3075/4000
Short Below 3020, SL 3042
Target 3110/2990/2970
DR Reddy Call Spread Options ShortNSE:DRREDDY shows negative divergence in Daily charts at the Monthly Resistance zones. Today, TL has been broken.
Used 75 min to enter short on this one, once the TL was broken along with break of support levels. EMA crossover had already occurred earlier. An options call spread is suitable in such circumstances to eat premium.
1. Bought 2850 CE at 23.4
2. Sold 2750 CE at 54.2
Breakeven: 2780
