8th June 2020 - INDUSINDBK - Intraday pick for riding the bull
Whassup people?
Nifty moved from 9600 - 10280 in 5 sessions .i.e a total of 680 points captured by the index.
The global market sentiment stayed bullish. US markets remained so bullish that even the bankrupt companies are rallying!
Enough of the news, Let's now come to the analysis at hand -
[u]Why watch IndusIndBK for bullish move on 8th Jun?[u]
How to trade?
We will plan the trading strategy using MAEE (market structure, Area of value, Entry trigger and Exit trigger) formula
Another jargon?!! Just bear with me for a minute - Its a useful jargon and you will know why as you will read further
* Based on my experience, the probability of the move to likely happen is 75% ( why? only the exhausted 5th wave is something of a concern here which is tackled by the overall positive sentiment of the global and local market)
* Market Structure - The trend is up as the market has been bullish in the last few days, Price above 200 MA and ATR is decreasing. (Analyzing market structure ensures you are giving respect to the market conditions)
* Area of value - The areas of value are at 427 rs which is acting as the current resistance and potential support after the breakout. To further, minimize the risk we will buy the breakout above another area of value at 430 rs and keep the target at the third area of value at 443 rs which will be our target. The last area of value is 448 rs which is the height of wave 3 and our extended target (Analyzing area of value helps you to eliminate risks of false breakouts, find the suitable price to enter and exit)
* Entry trigger - Enter at 430 rs with bullish candle formation with high volume acting as the trigger. If you missed the first move then wait for a pullback near the area of value and look for other entry triggers to enter the trade.(Entry trigger helps you time your entry in the market and only from the areas of value where the success probability is high. It helps you control lossess incurred by the fear of missing out )
* Exit trigger - Exit the market with a bearish pattern near the area of values of 443 rs and 448 rs. After the first target of 443 rs is hit you can trail your stop loss cost to cost and hitting stoploss with be exit trigger. (Exit trigger helps you know when to exit the trade and minimizes exits on market noise which is market temporarily moving against our analysis and often scaring us to exit the trade early)
That's all guys.
Show your support if you liked this detailed analysis and my trade setup.
Please like and follow for learning more such trading approaches through reading my posts here.
Comment with what do you think.
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Ankit
Nifty moved from 9600 - 10280 in 5 sessions .i.e a total of 680 points captured by the index.
The global market sentiment stayed bullish. US markets remained so bullish that even the bankrupt companies are rallying!
Enough of the news, Let's now come to the analysis at hand -
[u]Why watch IndusIndBK for bullish move on 8th Jun?[u]
- From the news - NASDAQ touched its lifetime high, I am anticipating a correlated move in the Indian market on 8th June 2020. With the bullish view in mind - INDUSINDBK is a good pick for Intraday buy
- From price action perspective - The stock showed a bullish pattern (ascending triangle on the 15 min TF)
- From Eliott waves analysis - - The primary wave is bullish in nature with two of the motive waves (wave 1 & 3) and both corrective wave (wave 2 & 4) already over for the stock prices. Wave 4 was an impulsive correction following the rule of alternating corrections. The stock is at present in 5th wave.
The 5th wave is exhausted which is why it is forming the triangle pattern.As per the rule, The maximum height of the exhausted 5th wave is the height of wave 3 which stands at 448 rs.
How to trade?
We will plan the trading strategy using MAEE (market structure, Area of value, Entry trigger and Exit trigger) formula
Another jargon?!! Just bear with me for a minute - Its a useful jargon and you will know why as you will read further
* Based on my experience, the probability of the move to likely happen is 75% ( why? only the exhausted 5th wave is something of a concern here which is tackled by the overall positive sentiment of the global and local market)
* Market Structure - The trend is up as the market has been bullish in the last few days, Price above 200 MA and ATR is decreasing. (Analyzing market structure ensures you are giving respect to the market conditions)
* Area of value - The areas of value are at 427 rs which is acting as the current resistance and potential support after the breakout. To further, minimize the risk we will buy the breakout above another area of value at 430 rs and keep the target at the third area of value at 443 rs which will be our target. The last area of value is 448 rs which is the height of wave 3 and our extended target (Analyzing area of value helps you to eliminate risks of false breakouts, find the suitable price to enter and exit)
* Entry trigger - Enter at 430 rs with bullish candle formation with high volume acting as the trigger. If you missed the first move then wait for a pullback near the area of value and look for other entry triggers to enter the trade.(Entry trigger helps you time your entry in the market and only from the areas of value where the success probability is high. It helps you control lossess incurred by the fear of missing out )
* Exit trigger - Exit the market with a bearish pattern near the area of values of 443 rs and 448 rs. After the first target of 443 rs is hit you can trail your stop loss cost to cost and hitting stoploss with be exit trigger. (Exit trigger helps you know when to exit the trade and minimizes exits on market noise which is market temporarily moving against our analysis and often scaring us to exit the trade early)
That's all guys.
Show your support if you liked this detailed analysis and my trade setup.
Please like and follow for learning more such trading approaches through reading my posts here.
Comment with what do you think.
1 like = 1000 Encouragements
Ankit
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