Trading Setups For the Coming Week
Sharing Trading setups with Detailed Charts in both Cash & Derivative markets for the following week. Analysis strictly for educational purposes only. Please read the disclaimer at the end.
Good morning traders!
In continuation of the major bearish trend, the benchmark Nifty50 index remained under pressure this week as well. Although it has formed an inside bar on the weekly chart, an bearish engulfing candle as well as an outside reversal setup on the daily chart means that the range is likely to be broken on the downside. In what was a very choppy market, a trend may soon emerge with bears leading from the front.
In accordance with the stance of the index, there were very few breakouts & bullish movements across the market, with no name passing the scan this week. As such, this week’s edition consists of a short trade under the FnO space, with potential breakout stocks & a few names to be added on the watchlist. Read on to find what they are!
FnO Space
I have provided only a single setup in this section. This one is showing alarming weakness, with a critical price breakdown. Here it is below -
WIPRO MAY FUTURES (CMP - 509.75)
This counter has broken below a very crucial support zone with rising volumes on the weekly chart. On top of that, OI has steadily increased with bearish setups on the daily chart as well.
TRADE SETUP - BREAKDOWN
My View - Bearish
Stocks-In-Consolidation
These stocks are trading in defined ranges and are poised to give substantial moves depending on which side they break their zones. Here are a few setups which can be added to the watchlist to watch for breakouts and catch the ensuing up-move, or be wary of existing longs in case of a breakdown from the consolidation.
SYNGENE INTERNATIONAL (CMP - 626.95)
This stock is in a consolidation spanning 18 months right at its all-time high zone. Volume has been shrinking steadily as the consolidation is panning out. Do lookout for any breakout from here which can be huge.
TRADE SETUP - CONSOLIDATION
My View - Neutral
REDINGTON INDIA LTD (CMP - 153.15)
In a similar fashion to the one above, this stock is in a consolidation near its all-time highs for 10 months. Volume is picking up on bullish days & falling on bearish days. Nevertheless, always trade on breakouts & breakdowns, or for swing trades right at the support or resistance levels. Watch this stock carefully as well!
TRADE SETUP - CONSOLIDATION
My View - Neutral
Breakout-soon Stocks
These stocks are on the verge of giving breakouts & heading into new territory. They are placed right at their resistance zones & can be added to the watchlist to quickly catch the breakouts as they occur, or play the reversal. Here they are below -
MRPL (CMP - 73.75)
This stock has already broken through a resistance zone with immense volume activity, and is now on the verge of breaking out above another one. All this one the weekly chart as well, which is an indication of solid strength. Check the chart & add it to the watchlist!
TRADE SETUP - POTENTIAL BREAKOUT
My View - Neutral
PANAMA PETROCHEM (CMP - 351.65)
This stock is on the verge of heading into fresh life-time highs. Facing an upward-sloping resistance line, it is making what looks to be an inverse H&S pattern. Volume has picked up recently as well. Keep track!
TRADE SETUP - POTENTIAL BREAKOUT
My View - Neutral
CEBBCO (CMP - 56.5)
In a similar fashion to the one above, this stock is on the verge of breaking out from an inverse H&S pattern, which suggests continuation of the ongoing bullish trend. Volume has been strong recently too. Keep track of this one as well!
TRADE SETUP - POTENTIAL BREAKOUT
My View - Neutral
AMBER ENTERPRISES (CMP - 3709.7)
This stock is on the verge of breaking above a sloping resistance line. Volume activity has been quiet & needs a trigger to push price upwards. Any breakout would lead the stock into fresh life highs, so track this one keenly.
TRADE SETUP - POTENTIAL BREAKOUT
My View - Neutral
That’s it from my side for the coming week as far as trade setups are concerned. I will be back again next week with multiple setups as well! Please undertake appropriate risk management while taking every trade. Stay safe from covid, & in markets too!
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Disclaimer - Charts, analysis and trading setups shared above are purely for educational & learning purposes & are not directly or indirectly any form of recommendation or advice. Please consult your financial advisor / carry out your own research before taking action in financial markets. Not SEBI Registered.