TCS


Following observations can be made:

1. Breakout from triangle at 9:40 so made an entry at 3203.70 with 75 qty

2. Price went below previous day's low giving an additional confirmation of the potential downward rally.

3. Since breakout happened before 12:30 pm , then our aim is the 2nd support line i.e. 3135.15

4. Stop loss is few points above the previous day's low i.e. 3293.50. This can change further if any other pattern or strategy is identified which will be explained as and when it occurrs.




Update as on 11:05 

1. We can observe that price is struggling to go down and several small indecisive candles have formed until now. It can be either considered as bears gathering their strength to go down or it could be indication of reversal of trend.

2. But, sellers are displaying strong resistance at the price zone plotted above, so we can continue holding our position until it breaks that zone.




Update as at 12:45

We can observe that the price is stuck in the above plotted zone and price needs to break either of the side to take any decision. If it breaks the upper boundary then I will exit, if it breaks the lower boundary then I will continue to hold on to my position.




Update at 1:25

Changed the time frame to 'day' in order to identify support zone and it is important to do that instead of being rigid on our targets. Any strategy needs to be flexible i.e. strategy rules need to be combined with other candlestick patterns and strategies for a good result. 

In the above chart, support zone is plotted, where the price is most likely to return and since it is close to our 2nd support line, it is even more reliable. We need to be cautious as the price is approaching towards this zone. We need to be even more attentive and look for candle formations in order to exit. Like I mention always, there needs to be logic/strategy even for exit.



Update as at 2:20

1. We can observe Bullish engulfing pattern, where in, Red candle is formed at the bottom end of downward rally and green candle forms next engulfing the red candle, which may result in the reversal of trend ( Engulfing pattern )

2. Also plotted resistance line, if price crosses above that then it is better to exit as we can not ignore the engulfing pattern signal. Only reason, I am going to wait is, there is possibility that bears are consolidating their strength to continue their rally and I can not rule out that yet.





Update at 2:55

Engulfing pattern does not result in trend reversal and 2nd possibility which I mentioned above occurred. Therefore I held my position. 
Price has entered the support zone which I mentioned in the earlier post. I am changing my stop loss to 3163 as there is not much time left and exit anywhere between this zone is a reasonable one.




Update at 3:10 :

1. Exit at 3:10 at 3155.60

2. Profit - (3203.70 - 3155.60)*75 = 3607.50