February 4, 2014

Intraday analysis

Despite initial gap down, bias was bullish because of support at 5970-6000 levels. This was visible in the first 5 min bar and the low thus formed was never broken during the day.

Now the day's signals...

First box... short trade as we had a breakout failure. It is normal for the first breakout or a bullish breakout to fail as the broader trend is down.

Second box.. shows signs of buying coming in at lower levels. Depending on your risk perspective, this was one area one could have taken a long position.

Third box... contains the breakout bar. SL here would be below 5990 F.  Trailing SL would be 6030 F in last 20-30 minutes.

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