Pharma Stocks will soon begin their Dream Run.All observations of chart
There was Distribution from 13500 to 10750 zone during 2015 to 2016.
Down Trend there after till June 2019.
From June 2019 till March 2020 there was a accumulation phase.
In April 2020 Index gave a range breakout and there was good upside which lasted till mid Sep 2020
As you can see index struggled around 12000 level during Sep 2020 to November 2020.
Finally in November 2020 Index crossed 12000 level and that resistance became support and index again touched the previous all time high.
Now index is hovering in the 13500 to 12000 band, which is the small dip as marked.
Usually when price wants to break a major resistance it gives such small dip.
In other words what we say, One step back two steps forward kind of price movement.
My List of Pharma Stocks for playing out this move:
1. NSE:SUNPHARMA
s3.tradingview.com
2. NSE:DRREDDY
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3. NSE:CADILAHC
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4. NSE:CIPLA
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Besides these there are various Cash Stocks Like Natco Pharma, Star Etc.
Phases
DAY (3-Phase) TRADINGI normally divide my intraday trading in to three phases. It not only helps me to stay out of unnecessary risk but also to book profits at right moments.
I don't say that the stock does not go higher after I book profit but most of the time it protects my profits before the market takes it back.
The three phases I am talking about are:
Opening-Continuation Phase
Mid-Trap phase
End-Decisive phase
Opening-Continuation Phase
In this phase, I look for continuation of the previous trend. Suppose a stock has been trending higher but pulls back in the very first candle of the day. I would wait for the sellers to get exhausted before buying near the lows. In the morning, relatively smaller time frames do help to take correct entries. So this phase is to take entries.
This phase starts at 9:15 and ends at 11:00
Most of the time I do take entries by 9:30 and kill the trades at 10:00-11:00 because stocks print day highs by this time.
Mid-Trap phase
This phase is silent, where most of the traders who made some money in the morning give it back to the market. There is lot of fuming and fretting in this phase. Traders take trades out of boredom or have guilt of not taking profits. Eighty percent stops are hit in this phase. Most of the low volume trading happens in this phase.
I personally prefer to look for fake moves to fool the newbies. Once again, I don't say that I am always right.
I just look for small scalps.
This phase begins after 11:00 and ends at 1:00-2:00
End-Decisive phase
I call this decisive phase because many times the final direction of the trend is decided in this phase.
This phase is killing. Why I say so? Let's say a stock is in strong uptrend today. At the beginning of this phase you will notice a sharp dip which will wash out weak buyers. Once the weak hands are out stock zooms back to make new highs.
This one starts near 2:00 and ends at 3:30
I hope it makes sense to most who like to trade for real.
Do like and comment if you feel like.
Regards
Bravetotrade
