CNXMETAL trade ideas
Make or Break for Metals NIfty metal at important support i.e, 5000-5050 range if it gets broken then further fall will be witnessed in metal stocks , but there is a high probability that it might take support at these levels as 50EMA and horizontal support line is at confluence , can go long if a good bullish candle is seen above the support
Nifty Metal chart has formed a cup & handle after breaking outNifty Metal sector index has been in a parallel channel since 2020 March-April. On 29th April 2021, it broke out of the parallel channel, but retested the same levels by forming a cup and handle pattern. This cup and handle pattern also seems to be broken on 11th June 2021. Which signals bullishness in Nifty Metal stocks.
Analyse Nifty Metal stocks individually and pick a couple of stocks which offer you best risk reward ratio, rather than entering in every metal stocks.
PS: I am not a SEBI registered advisor. Enter in trades after reaching out to your advisors or at your own risk.
CNX METAL LONG.CNXMETAL has been in an uptrend, continuously forming higher lows. After the recent complex pullback, it seems rested and ready to move forward and challenge its highs and possibly make new ones. Certain stocks in this sector can be traded for a short term trade and I will post my analysis of them shortly.
THE RELATIVE STRENGTH OF NIFTY METALThis is Post 2 out of 7 in an exploration of an investment strategy known as top-down investing.
This comparative chart showcases the relative strength of all of the companies that the NIFTY BANK Index comprises as of 15th June 2021.
Here, I am looking to identify the companies/stocks that are outperforming/leading the index.
NIFTY METAL: THE PARTY IN METAL STOCKS HAS JUST BEGUNMetal rally is not over it is a temporary blip.
Reasons why the rally in metal stocks may not end so soon:
1) As there is a strong demand for metals, the supply chain is not yet fully in place and there is an expectation of a super cycle, the party in metal stocks has just begun.
2) The global economic data is very strong. Once the second wave is over, then India’s recovery would also be strong. Eventually, we will see the market following global trends.
3) Chart looks very promising to me. Look at 20 DMA, it is acting as a major support. RSI is forming a higher base,which is a sign of big bullish momentum. Rest is self-explanatory.
Not everyone is equally bearish on the metal stocks. I believe the correction in prices is temporary and will not last.
My favorite picks: TATA STEEL, SAIL, JSW STEEL, & JINDAL STEEL.
NIFTY METALNIFTY METAL, all metal stocks looking highly bullish, also good cup and handle breakout in index showing positive sign.
Consistent Trader - Chapter 4Lets start this week’s chapter with the story of “rabbit & tortoise” Rabbit & tortoise decided to have a running race.
Race 1 : In between the race rabbit slept & tortoise won.
Moral of race 1 : You should take continuous efforts to become a successful trader.
Race 2 : This time rabbit did not sleep and won.
Moral of race 2 : No strategy will work 100%. Accept that fact.
Race 3 : Tortoise wanted to win the race & changed the strategy. So it challenged the rabbit to reach the other side of the river. Rabbit ran along the border of the river & took more time to reach the other side. Tortoise just swam across the river & reached the other side. Tortoise won.
Moral of race 3 : Select the strategy as per the market situation. Adapt fast when market structure changes.
Race 4 : Both rabbit & tortoise became friends. They decided to take turns in winning the races.
Moral of race 4 : Success/profit will sustain when there is no or less ego. In trading when your stop got hit, accept it & close the trade. Dont do revenge trading.
Think different than other traders to be profitable. Profit does not depend on fancy indicators or techniques. It depends on how you manage your emotions during trading & execute the trade. The rabbit had good speed, but in race 1 it lost because of wrong execution. Similarly a good strategy or good trade set up which is not executed properly can take away your profit.
(To be continued next week...)
NIFTY METALSNIFTY METALS
DAILY CHART FORMING CUP AND HANDLE
BULLISH RSI @ 65
BULLISH MACD CROSSOVER START
TARGET @ 5881
Metal is rusting out agian NSE:CNXMETAL New high is ahead as institutions are also bullish to heavyweight
METAL MOVING STRONGNIFTY METAL SECTOR IS LOOKING STRONG AGAIN.
THIS WEEKS CLOSING WAS GOOD.
Next week will be decisive, but looks like its ready for next big moves.
Nifty Metal : Cup and Handle PatternNifty Metal
Price Action: Cup and Handle Pattern
RSI: Divergence
METALS [possible breakout]Metals have seen a huge rally in the past 6 months.
They are still quite strong and could show another small leg of the rally in the upcoming days.
Nifty metal index has formed a bullish continuation "cup and handle pattern" on the daily timeframe.
It signifies the continuation of the uptrend after breaking out the resistance level or the neckline of the cup.
Time horizon :Short term-medium term.
NSE:CNXMETAL
Metal sector looks promisingNifty metals have formed Cup n Hanndle pattern on daily chart...
Looks promising for Tata Steel, JSW steel, SAIL & other steel companies in upcoming days.
metal (1D) shows cup and handle pattern market continues its bull run
breaking metal all time high
metal shows cup pattern
Metal rally to continue
Metal index rebounded from the support
Second round of rally to begin
Existing investors should hold
New investors shouldn't enter
Only for educational purpose
Metal SectorMetal sector again ready to fly formed inserve head and shoder on 1hr chart wait for breakout
Stock To Watch Under Metal Sector
-Sail
-Moil
-Tata steel
Consistent Trader - Chapter 3Market structure keep on changing as per the participants mindset and sentiment. The way a trader handles his trade changes according to that For
example, if you are driving in a highway, you can drive fast. Inside the city you are not allowed to drive fast.
Similarly, according to the market structure you have to use your trading strategy, risk management and trade management. Sticking to one strategy in all market conditions wont make a trader money. Understanding market structure comes by experience, but developing it depends on the trader’s
flexibility.
For example in an extreme bullish market, buying when the price breaks the resistance is right and profitable. In normal bullish market, buying at the support is profitable. Because of over confidence about his strategy and believing his strategy is a holy grail an intermediate level trader applies the same strategy in all market conditions (Please refer to chapter – 1 to know about intermediate level trader).
Are you struck with one strategy or one trading style?
Do you believe your strategy is supreme?
Well it is time for you to rethink about it now.
(To be continued next week...)
Metal sector possible bearish moment in near futureinverted hammer is created in monthly time frame in metal sector so beware taking long positions. long time traders should partially book profit.
