Price has failed to test the earlier extreme, thus forming a double top. Now on the second run up, it formed a head and shoulder pattern indicating signs of reversal.
Scenario 1: CMP is 497. If the prices breakdown below 491 with good volume then it will 480 which can be a small swing trade. For short term positional , prices are expected to touch 450.
Scenario 2: On the other hand, from the current level prices could get a small support and retrace to 510 level and then fall back on its course. Either way the stock is expecting a correction.
Just my observation and purely for educational purpose. THanks.
Trade ist aktiv
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As expected prices got a little support and retraced till 509. Entered @ 506. Now made a fall till 493.
Kommentar
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Price gapped down and touched 485. Now it has closed the gap. Hence Booked half @ 490. Trailed SL to 500 for other half.
Trade geschlossen: Ziel wurde erreicht
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A good 35 point move. Closed my position in futures @ 471.