Coal India: Channel Trade potential

تم تحديثه
Coal India
Closing Price 129

Observation

- Stock is trading in a blue channel
- currently at lower end of the channel
- we observe a Bullish Harami candlestick pattern at lower end of the channel

- convergence of 50 day EMA and 200 day EMA around 140
- 136-142 is a crucial band for the stock
- important for the stock to give a weekly close above the red dash trendline to increase the probability of up movement

View
Target for the current set up:-

Short term 136 / 142

Medium term 160

Long term 196-220

Stop Loss

Short term Close below 125

Medium term Weekly Close below 119


At current levels, and based on the other technical indicators and pattern, the stock provides a good risk::reward ratio to go long

F&O strategy

Sell 29 April 2021 125 Put option
Buy 29 April 2021 120 Put option

The strategy provides roughly 13% of reward potential on Margin requirement till 29 April 2021

Take care & safe trading...!!!


Disclaimer:

- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- 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
أغلقت الصفقة: تم الوصول للهدف
Our Options strategy in Coal India gives us the desired result of 13% ROI

This despite the stock being sideways and is down by a Rupee ( we initiated trade when stock was at 129 and cmp is 128)

This is where strategies make a difference....!!!

It increases your chances of winning trades

Hope you guys enjoyed the trade.

Happy trading....!!!😊
Bullish PatternsbuyCandlestick AnalysisChart PatternsCOALINDIANIFTYTrend Analysis

يعمل أيضًا:

منشورات ذات صلة

إخلاء المسؤولية