LOOK FOR SELLTrendline break with the momentum and also we can see price break and trade below the support zone, Now we need a clear pullback to enter.
Trend Line Break
LOOK FOR BUYPrice bounced from the support zone and also break the trendline with the momentum, Now we need a clear pullback to enter into the buy trade.
CRUDE OIL 15 min chart UPDATEDCrude oil chart posted earlier today.... same one updated with RESISTANCE LINES.
Channel has been broken and now it remains to be seen if RESISTANCE will be broken on upwards movement.
LOOKS GOOD TO BUYVery common price action structure with momentum, There is a different trade managaement and money management behind the setup so do your own analysis before taking trades
LOOK FOR BUYWe can see very good uptrend after the break of trendline, Do not buy before trendline break and take trade on price action setup
Nifty: Was It Just Short Covering ?Hi, Thanks for your response to my previous post which actually made profit for some traders. Expecting similar response for this post too.
So the rally did come, as per expectations, which took the index from 10701 to 10809 in just two trading sessions. However, it came back to the same level of 10711 and faced a hard push to 10837. Was it just short covering which started above 10770 and boosted by the breach of 10810 ? Well! it was one of the factors but the question is how short sellers were compelled to cover their shorts ?
And the answer is, It was the buyers at the support 10700-10710 who had a strong belief that this level has held the market twice and it will hold it this time too. At that time I was talking to a colleague sitting next to me that the market could reverse. As I looked on smaller TF, market was breaking out of a falling wedge, the first sign of reversal for me.
I was quite optimistic for 10750 at that time but market comfortably sustained above that level. Next halt was at 10830 and it just achieved that.
Present Scenario : Last week was a whipsaw. Can we expect a trend this week? I personally do not think so. Presently we are resting at an important downtrend line resistance.
Case 1: If we continue to move above 10830 level, we have a second bearish bat pattern sitting at the corner. Coincidentally, the PRZ of both the patterns fall at 10870 (for further clarity see previous post above). Therefore, the level 10870-10900 may again act as strong resistance for the market. Which means, we may see reaction from this zone. It would depend upon the type of the reaction that the further course of action can be anticipated.
The more time we stay above the downtrend line, the more would be the chances to breach the PRZ resistance. In such a case, it may soon hit 10930 or may retest previous all time highs.
If bearish move is to continue, it has to come back fast into the bearish zone (under the TL). In such a case, after hitting 10870 (or before), a sharp reaction has to push the market towards 10810 and 10766.
Where would I go bearish?
I might trade opening small short positions near the PRZ. But I will go fully bearish below 10700. Until then I ll enjoy the spikes in some stocks like BajFin, Kotakbank and Lupin etc.
Case 2: We do not resume the current up move above the TL (10830) and reverse from there. In this case too I will go bearish below 10700 only. Below 10700 I would hunt for 10600 (Bat target 2).
I hope that this analysis will help some traders, who follow technical analysis, to take better decisions.
Trade safe, stay healthy.
Regards
