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!
Another week, another period of strong broader market activity. On the contrary, the benchmark Nifty index managed a mere 30 points, indicating indecisiveness. As mentioned in the previous newsletter, the broader trend remains bearish. Watch for the 18350 level to be taken out for a fresh bullish trend to begin. Until then, lets stick to the pockets where strength is galore!
Commodities, metals & energy stocks were the front-runners, with bank stocks experiencing profit booking. Good strength was also seen in FMCG stocks, with a particular “meme stock” posting the biggest gain!
This resulted in numerous bullish structures & breakouts, which have made their way into this edition! Such setups coupled with some pullback trades offering great R:R make the list of setups presented today. Read on to find what they are!
FnO Space
I have provided only a single setup in this section. A setup showing superb strength & suggests more to come. Yes, this one is the famed meme-stock making a mockery of the trollers. Here it is below -
ITC APRIL FUTURES (CMP - 269.7)
This counter has broken above a crucial falling resistance trendline on the weekly chart. In addition, OI has been up by 6%, there is solid put writing as well as trapped call writers. Check the chart for complete analysis.
TRADE SETUP - BREAKOUT
My View - Bullish
Breakout Trades
These stocks have showed immense buying activity, breaking above crucial resistance zones or patterns! Some also heading into blue-sky zone, i.e. All-Time-High territory! Seeing the volume activity, these look very bullish and poised for further strong upward runs.
CHENNAI PETRO CP (CMP - 162.55)
In a similar fashion to the one above, this stock has broken above a falling resistance line as well where it faced rejections multiple times, doing so with volumes which are highest in more than a year! Very positive breakout and entails good momentum ahead.
TRADE SETUP - BREAKOUT
My View - Strongly Bullish
MANGALORE CHEMICAL (CMP - 109.2)
This stock has broken out from a 12-MONTH consolidation, doing so with highest volumes in 12 months as well. Making a fresh 52-week high too, this setup looks very promising. Do check the chart below!
TRADE SETUP - BREAKOUT
My View - Strongly Bullish
BHARAT ELECTRONICS (CMP - 239.6)
Another stock entering 52-week high territory, this stock has broken above a strong resistance zone which it couldn’t break for 4 times. Volumes have been 4x times it’s 20-Week Average. Strong Breakout & expect upward momentum to continue.
TRADE SETUP - BREAKOUT
My View - Strongly Bullish
SIYARAM SILK (CMP - 551.3)
This stock has broken out of a 6-Month Consolidation. Another stock making 52-week high, volume activity has been strong too with it being 3x times the 20-Week average. Do check the chart below to see the complete picture.
TRADE SETUP - BREAKOUT
My View - Strongly Bullish
Breakout Retest / Support Zone Trades
While some stocks as those given above have given breakouts, few are giving a revisit to their previous breakout / strong support zones. Such setups offer very good risk-reward trades and can be traded with conviction if the chart elements are favourably placed. Here are a few of them given below -
WELSPUN CORP (CMP - 195.85)
After a good breakout above a crucial resistance zone, this stock has retraced towards the breakout zone, doing so on very low volume. With a very good R:R, this looks set to resume its upward trend again. Check the chart below!
TRADE SETUP - PULLBACK / RETEST
My View - Bullish
INDIA GLYCOLS (CMP - 1057.55)
This stock has given a nice pullback after good breakout. A classic pullback occuring on low & falling volumes, it has also made an inverted hammer candle, hinting that the pullback retracement can end & bullish trend can resume. See chart below!
TRADE SETUP - PULLBACK / RETEST
My View - Bullish
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, & 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.