Canara Bank: Chart set up, trading view and trading strategy
We are looking at weekly chart of Canara Bank
Phase 1 - Trading in a parallel channel from Mar 2018 to Aug 2019
Phase 2 - Trading in a parallel channel from Feb 2020 to Aug 2021
Phase 3 - Canara Bank is back in the same zone as between Mar 2018 to Aug 2019
296-310 zone is crucial resistance zone for the stock. It could be a strong breakout if sustained above that on weekly closing basis. In such case doors would open up for target of 359/ 404 / 464 odd levels. However in the previous 2 phases Canara Bank traded in the parallel channel for approximately 1 and a 1/2 years. Going by that logic a sustainable breakout above 310 could be somewhere around April 2023.
I would be skeptical at current levels to buy. I would wait for the stock to either give a breakout confirmation above 310 or ideally I would wait for lower end of the channel around 225 odd levels for accumulation.
Important levels have been discussed. Plan your trade accordingly.
Take care & safe trading...!!!
Trading view: At top end of the channel and near resistance zone. Will be closely monitoring 296-310 zone.
My Trading strategy: Short strangle strategy
Going with a Short strangle strategy having a yield potential of approximately 7.7% on Margin requirement.
Loss protection
- for a rise up to 328.50 on the upside and
- for a fall up to 251.50 on the downside
Review points for me, 310 on the upside and 268 on the lower side. Do follow your risk management measures.
Disclaimer
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- I have been wrong in the past and can be wrong again in future too
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be
Phase 1 - Trading in a parallel channel from Mar 2018 to Aug 2019
Phase 2 - Trading in a parallel channel from Feb 2020 to Aug 2021
Phase 3 - Canara Bank is back in the same zone as between Mar 2018 to Aug 2019
296-310 zone is crucial resistance zone for the stock. It could be a strong breakout if sustained above that on weekly closing basis. In such case doors would open up for target of 359/ 404 / 464 odd levels. However in the previous 2 phases Canara Bank traded in the parallel channel for approximately 1 and a 1/2 years. Going by that logic a sustainable breakout above 310 could be somewhere around April 2023.
I would be skeptical at current levels to buy. I would wait for the stock to either give a breakout confirmation above 310 or ideally I would wait for lower end of the channel around 225 odd levels for accumulation.
Important levels have been discussed. Plan your trade accordingly.
Take care & safe trading...!!!
Trading view: At top end of the channel and near resistance zone. Will be closely monitoring 296-310 zone.
My Trading strategy: Short strangle strategy
Going with a Short strangle strategy having a yield potential of approximately 7.7% on Margin requirement.
Loss protection
- for a rise up to 328.50 on the upside and
- for a fall up to 251.50 on the downside
Review points for me, 310 on the upside and 268 on the lower side. Do follow your risk management measures.
Disclaimer
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- I have been wrong in the past and can be wrong again in future too
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be
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