1:6 RR - NMDC Good Long Opportunity - Short Term TradeGood Long Opportunity for Feb expiry. The 15 mins downtrend that started on 21st January 2021 was broken recently on 17th February. On 18th February the price made higher lows and higher highs and the previous swing wasn't tested. This is a sign of good strength. An interim resistance was broken today and the price closed taking support on the level.
Signs of Strength:
Nifty in Red but NMDC made higher highs
PSU Stock and PSUs are having their bullish rallies. This one is yet to rally since the budget.
Closing above resistance and taking the support.
Buy NMDC for a quick target of 122.5 and see if we sustain the level. If we break with strength then an easy target awaits at 130.
Keep a strict stop loss at 118.
There is a 40% chance of hitting the SL however since the risk-reward is too good to ignore, I have personally taken my position at the last minute today. I wouldn't mind my SL getting hit either. Once we cross 124, I will move my SL to 122 and ride until 130.
