How did We Identify the shorting opportunity in Hindalco?
Hey, welcome back, Today market traded in the same range as we told you yesterday, and today nifty kind of consolidated. We were tracking metal for few days it was having some buyers and buyers were losing the momentum, although buyers still have the strength and we took an intraday trade today. we don't usually prefer trading intraday as one move of the trade lasts for days. when metal opened today we saw that it had a great buyer and with the help of that metal broke the previous area in which it was holding earlier and Hindalco was highly impacted by the metal move so we selected that stock. So this explains why we selected this stock. Now let's talk about the logic behind the Hindalco trade.
Initially, we were thinking of taking a buy position in this as the buyers were quite heavy in this and stock opened with a great candle of buyers which made us more interested in a buy trade but then we saw the rejection in a candle, we use 15 min chart time frame because that's the best time frame from our point of view. It is more stable for intraday that's what we believe. Now look in the chart below, second and third candle have wicks and wicks tell us a lot about the other party presence and their force, how strong they are. So when we saw that it could be a sign as sellers were coming from the area where the previous sellers were so from the experience we anticipated that it can form range. Then we started looking for the sell trade.
When the stock price stuck for almost an hour, the stock was moving in the same area. in that area price was stopped by a seller and then coming down. we were noticing this move then buyers tried to go up but they were stopped again and then they declined again so that was the moment we knew that, they are exhausted now so we took the trade 13:30, then it just came down and our target was hit within 30 minutes.
We hope you understand our logic, we know you may find this logic peculiar a but those who are professionals will understand this. this is pure price action. there was no involvement of any indicator while trading. it was just only the reaction of price.
If still, you don't understand something and want to know about it then please drop us an email. we will be happy to help. remember there won't be any money involved for this.
Yes and tomorrow if you see the good reaction of buyers in the area where it is holding now then you initiate a buy intraday trade and exit at the area from where it fell today.
Disclaimer - This information that we are providing you is our personal opinion, we are not saying our opinion will be 100% true as the market is very uncertain, and we highly recommend you consider this knowledge from information and an educational perspective. Before making any decision regarding investing please first comprehend the logic.