KOTAK MAHINDRA BANK



Following observations can be made:

1. There is breakout from the triangle towards upper side at 9:35, hence trade taken with 100 qty for 1858.85

2. Since breakout happened before 12:30 pm, we can aim for second green line (S2) i.e. 1872

3. Stop loss is few points below the black line, also the first candle i.e 1842

4. Like I mentioned in the earlier post, today's first candle exceeded previous day's high which is giving us a signal of good upward rally.




Update as on 10:25:

1. We can observe strong resistance shown at the price level 1860 - 1861

2. Hence, I am changing my stop loss to 1852 in order to limit my loss to minimum if the trend reversal happens. It is better to be ready than to expect continuation of trend ignoring all the important patterns. If stop loss is hit and then if the candle breaks out of triangle again, then I will not be making re-entry until it breaks out the resistance line plotted above.

3.  For now, holding the position until stop loss is hit. But if resistance breaks, then I will hold on to my position as per the set target or it may change on appearance of patterns important for decision making.




Update as on 12:35 :

1. Stop loss hit at 1852 so made an exit.

2. Reason I took trade was, good green candle formed, breaking out from the triangle and also day's opening candle crossed previous day's high. But like everyone is aware, every trade comes with risk, and by setting a different stop loss than earlier, we avoided maximum loss. 

3. Since the plotted resistance line played such a strong role, if the candle crosses that zone, then I shall make a re-entry.

4. Loss - ( 1858.85 - 1852 ) * 100 = 685