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!
As suggested in the previous newsletter, the Nifty 50 benchmark index continued it’s bounce from it’s recent lows and scaled more than 800 points this week., hitting it’s 20-week Moving Average and giving a close just shy of that level. There isn’t any hint as such of a reversal on the charts, thus the next week can experience some upward movement as well. So far so good!
Broader market remained positive throughout, with stocks from multiple sectors yet again showing strength and select few giving strong breakout and scaling fresh life-time highs.
In this edition of the weekly newsletter, for the first time in months, there are only Breakout trades! No shorts, no support plays, nothing. Pure breakout and bullish strength setups. Read on to find what they are!
FnO Space
I have provided only a single setup in this section, reason being I didn’t find any other favourable risk-reward trade! A setup showing considerable strength on the upside. Here it is below -
TITAN MARCH FUTURES (CMP - 2712.85)
This counter has closed at its highest level ever, doing so on good volumes. It has also closed above the strike with highest call OI (2700), hinting at more upside if it sustains due to covering of shorts. Take a look at the chart below!
TRADE SETUP - BREAKOUT
My View - Bullish
Breakout Trades
In-sync with the broader market, these stocks have showed immense buying activity, breaking above crucial resistance zones or patterns! Seeing the volume activity, these look very bullish and poised for further upward runs.
SUPREME PETROCHEM (CMP - 837.1)
This stock has broken out from a 10-Month Consolidation, and closed at its all-time high level, indicating at huge strength. Volumes were highest in 10 months as well. Huge Breakout. See the chart below!
TRADE SETUP - BREAKOUT
My View - Strongly Bullish
TIMKEN INDIA (CMP - 2198.75)
Another stock closing at it’s highest ever level, this one has given a breakout above a 3-Month resistance zone with extremely heavy volumes. Any pullback will provide the best entry with minimal risk.
TRADE SETUP - BREAKOUT
My View - Strongly Bullish
GNFC LTD (CMP - 759.3)
Yet another stock closing at its highest level, this one has broken out of a bullish pennant pattern, indicating at good momentum and a possibly sharp move ahead. Volume characteristics ticked all boxes. Checkout the chart and see for yourself!
TRADE SETUP - BREAKOUT
My View - Bullish
USHA MARTIN (CMP - 112.2)
Yes you guessed it :D, another stock closing at its highest level. This one has broken out from a 5-Month consolidation, with low & falling volume as the consolidation shaped up, and a huge burst on the breakout. Any pullback will be the ideal entry according to me. Chart given below! (Disc - I have some positions here)
TRADE SETUP - BREAKOUT
My View - Strongly Bullish
WEST COAST PAPER MILLS LTD (CMP - 307.2)
No, this one hasn’t closed at its highest level, haha. Nevertheless, it has broken out above a 3-YEAR Resistance Zone, which is huge! And this is not even the best part about it. Volumes have been the highest in 5 YEARS! Very strong, super bullish. See the chart below and enjoy the candles. (Disc - I have some positions here)
TRADE SETUP - BREAKOUT
My View - Strongly Bullish
TRENT LTD (CMP - 1262.05)
This counter has broken out from a classic rectangular consolidation, which lasted for more than 5-months. Volumes were huge on the breakout, with very less activity during the consolidation phase. A textbook rectangular consolidation with 3 sets of highs & lows, as marked on the chart!
TRADE SETUP - BREAKOUT
My View - Strongly 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.