Banking sector saw some heavy selling this week, but it shouldn't come to us as a big surprise as most banks have been trading at very high prices, and more importantly, perilously close to their respective supply zones. BankNifty took the toll for obvious reasons, after a long struggle to cross the 41600 level, price was finally pulled down from deep inside the supply zone.
Index has dropped by almost 5% within a week, and as a result, we have just hit a recently created demand zone. This is the first retest of this demand zone since it was created, and we saw a very good rejection today where price easily sustained above the zone. I'm expecting the price to at least temporarily retract from these levels, which makes for a very affordable & low-risk long position for the coming week.
Rationale:
- A fresh demand zone being re-tested, rejection with good volume.
- Price has taken support at .786 fib-level.
- Price has broken through 14-period ATR range on 30 Min and other smaller TFs.
- RSI & Stochastic ascending on 1H and smaller TFs.
- ADX indicating a loss of strength in the down trend.
Final Note:
- This is supposed to be a quick trade, max 3 days(do not wait until the weekly expiry).
- Exit criteria, either of the following, which ever happens first.
>> - Target achieved
>> - Stop loss reached
>> - End of 3rd day of the trade
- Do not go big, as this is a trade against the trend, but risk to reward is very good on this one(almost 1:5), so should it turn out positive, it'll be well-worth the wait.
Index has dropped by almost 5% within a week, and as a result, we have just hit a recently created demand zone. This is the first retest of this demand zone since it was created, and we saw a very good rejection today where price easily sustained above the zone. I'm expecting the price to at least temporarily retract from these levels, which makes for a very affordable & low-risk long position for the coming week.
Rationale:
- A fresh demand zone being re-tested, rejection with good volume.
- Price has taken support at .786 fib-level.
- Price has broken through 14-period ATR range on 30 Min and other smaller TFs.
- RSI & Stochastic ascending on 1H and smaller TFs.
- ADX indicating a loss of strength in the down trend.
Final Note:
- This is supposed to be a quick trade, max 3 days(do not wait until the weekly expiry).
- Exit criteria, either of the following, which ever happens first.
>> - Target achieved
>> - Stop loss reached
>> - End of 3rd day of the trade
- Do not go big, as this is a trade against the trend, but risk to reward is very good on this one(almost 1:5), so should it turn out positive, it'll be well-worth the wait.
거래청산: 타겟 닿음
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.