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GAIL : Leading DiagonalTRADING STRATEGY: Sell on rise keeping SL of 174 and look for the target of 145 zone in coming trading sessions Theory: DIAGONAL: Diagonal are the motive waves like an impulse wave, but diagonals are different from impulse wave in that they do follow the first two Sutras (rules of impulse wave) for wave analysis, but it does not follow the third one i.e. Wave 4 should not intervene the territory of the wave 1. In a diagonal wave 4 always enters into the price territory of the wave 1. Properties Of Diagonals: Diagonals can be contracting or expanding type being expanding diagonal a rare one. In contracting type, wave 3 is shorter than wave 1, wave 5 is shorter than wave 3, and wave 4 is shorter than wave 2. In expanding type, wave 3 is longer than wave 1, wave 5 is longer than wave 3, and wave 4 is longer than wave 2. Types Of Diagonals: LEADING DIAGONAL ENDING DIAGONAL LEADING DIAGONAL: In a leading diagonal , waves 1,3, and 5 are all impulsive in nature or all in corrective form of zigzags. Wave 2 and wave 4 are always present in a zigzag form. A leading diagonal suggests the starting of a new wave & that is why it can develop wave 1 of a impulse wave and a first wave of a zigzag pattern. ENDING DIAGONAL : This is the most common diagonal that can be found out at the ending of a main trend or main correction. It consists of all the waves 1-2-3-4-5 in a single or multiple zigzags. They can be found placed at 5th wave of an impulse wave or can been seen as a wave ‘C’ of a corrective waves zigzags or flat. After the termination of the ending diagonal , a swift & a sharp reversal takes place which bring the prices back to the level from where the diagonal beagan.
NSE:GAILShort
by TradingSutra
Perfect Trade setup using Price Action & Indicator confirmationThe chances of trade being successful increase when you combine Price action with Indicators. This Trade setup uses Weekly and daily timeframes and two indicators – RSI & MACD. Stock: Motherson Sumi CMP: 135.65 Type: Swing Trade (delivery) Buy level: 139.50 (on a breakout above rejection candle high on weekly timeframe) SL: 119.40 (Slightly below rejection candle low on weekly timeframe) Target: 199 Risk/Reward ratio: 2.9 The rationale behind the setup: The chart formed strong resistance at 123rs which was broken by a strong green candle accompanied by above-average volume. The stock rallied up to 272 and then entered the correction phase. Once resistance is broken, it turns into support (change of polarity principle). As shown on the chart, a strong rejection candle with high volume was formed at the resistance turned support level.
MLong
by Sai_Kumar
6
Rising Triangle formation in KPITTECHKPITTECH chart is forming a rising triangle after a good retracement. Rising triangles are theoretically supposed to breakout to the upside and continue the price higher but practically you'll find many examples where it breaks down below the rising trendline. on the upside, the price is getting rejected on horizontal resistance and forming hammers/spinning tops. Wait for it to break on either side to take a trade. if it breaks to the upside, one should wait for a retest of the trendline.
NSE:KPITTECH
by Sai_Kumar
NIFTY at critical juncture - Breaking out of Strong ResistanceNifty has been in a correction for roughly 6 months and now it’s breaking out of the falling channel which coincidently intersects a Strong Resistance at the breakout point. The significance of a Support & Resistance line increases when the price reverses at the same point multiple times. This Resistance line on the chart is strengthened at multiple points during this correction (TouchPoints marked on the chart). The cherry on the cake is that the breakout has not taken the price too far away from the resistance line. We may get a good risk/reward ratio if it sustains above the line. If the price sustains above 17670, it will continue higher with the nearest resistance at 17800 which can act as a target in a smaller timeframe. The next target at 18350 on a higher timeframe. The chart may actually form Doji’s or Spinning tops because the Resistance is too strong, and also it is the upper line of the falling channel. Indicators are flashing green with strong RSI and MACD in positive territory. One should wait for confirmation of breakout above 17670 before going long. If it fails to sustain above the resistance and forms a bearish candle, it can be a good trade opportunity for sellers. Disclaimer: This is not buy/sell advice. Please do your due diligence before making any trading decision or consult your financial advisor. Sharing my analysis and thoughts for a stronger and healthier community. Cheers
NSE:NIFTYLong
by Sai_Kumar
4
HDFC: Inverse H&S BreakoutInverse Head and Shoulders This pattern forms after an extensive downside rally. It consists of a left shoulder, a head, and a right shoulder. The left shoulder is formed after a big bear rally in which the volumes are quite large. At the end of the left shoulder, a minor correction takes place on the upside which happens on the low volumes comparatively the starting of the left shoulder. After this again a down move can be seen on large volumes forming a head having its bottom is below the left shoulder following an upmove correction on lower volumes & completing the head. The completion of the head must be above the top of the left shoulder. If the prices rise above the top of the left shoulder then too this pattern remains intact. In the end, the right shoulder is formed usually on smaller volumes comparatively the previous two rallies. Now if you connect the tops of the left shoulder, head & the right shoulder there will be a formation of the ‘Neckline‘. This line will act as a decision line. If the prices break this neckline & give closing above the line, this will be the confirmation of the breakout of the Inverse head and shoulders pattern. However, it has been noticed that after breaking of the neckline the prices again attracted towards this neckline. We say this phenomenon as a retest of the neckline which will add some more confidence while trading this pattern. After retesting if the prices again start rising, this will be the final confirmation of the up move as shown above. The bookish target of this pattern is taken as the vertical price range from the bottom of the head to the neckline & the bookish Stop loss should be the bottom of the right shoulder. However this stop loss can be big, so it is advised to keep a stop loss of 4-5% of the price range below the neckline. TRADING STRATEGY: Buy near 2450 zone with SL of 2230 and look for the target of 2650/2800-2850 zone.
HLong
by TradingSutra
3
CIPLA: BULLISH FLAGStock is has formed a bullish flag pattern on weekly chart being the support region near 850 zone & resistance area at 1000 zone. Any sustained move above the level of 1000 will lead the stock to the new highs in a very sharp upside rally. Stock is consolidating from last 1 year , so the momentum after the breakout wil be strong. Trading strategy: Buy above 1000 with SL of 920 and look for the immediate target of 1100 and 1150. The measured bookish target for the bullish flag is coming about to be in the region of 1250.
NSE:CIPLALong
by TradingSutra
1