Trading Setups For the Coming Week
Sharing actionable trading setups with charts in both Cash & FnO markets to set you up for next week.
Good Morning fellow traders!
With this week ending with a heavy sell-off, you may probably not consider taking long trades for the coming week and might be hell-bent on shorting everything in sight. It does pay though to have trades on both sides, which helps to balance out and diversify positions, thereby reducing overall risk and contributing to the most important aspect of trading - surviving and staying in the game.
With this in mind, here are some Short as well as Long trading setups which might warrant a second look.
FnO Space
Positional short trades can be executed only with the help of derivatives. Important to have sufficient capital before wielding these powerful instruments. It can be very ugly if positions go against you and you have insufficient capital. I’ll repeat- the most important aspect of trading is to stay in the game.
On that note here are some short setups to look out for in the FnO space-
DLF DECEMBER FUTURES
Charts show a breakdown from a symmetrical triangle pattern, which is inherently bearish. Target @ 360 , with entry on a pullback giving the best R:R. Check the chart below for total analysis.
SBIN DECEMBER FUTURES
The counter is placed at a crucial support zone @ 465-475, with the 100 Day EMA coming below @ 461. Breach of these levels would lead to good shorting opportunity. If it sustains below 460, 440 levels can be targeted, with an SL above 475 on a closing basis. Here’s the chart below-
PIRAMAL ENTERPRISES LIMITED DECEMBER FUTURES
Similar to the SBIN Fut chart, this one is finely poised for a shorting opportunity as well. Just the not-so-small benefit that it is placed right at the neckline of a Head & Shoulder Top. Breach of the support zone @ 2460-2505 would confirm the H&S breakdown, and should give ample opportunities to sell on rise again. Do check the chart below for the detailed setup and analysis.
Stocks-in-Consolidation
Not every cash-counter out there is making it’s traders feel the pain of being in red! Here are a couple of stocks which are yet to go beyond the defined boundaries, and worthy of being on the watchlist for Long trades.
BAJAJ HOLDINGS & INVESTMENTS
Currently placed within a range for 2-months, with volume activity being on the lower side. A breakout on the upside with strong volume activity will put the stock into the blue-sky zone, with Fibo based targets @ 5300/5480. Have a look at the chart for a better picture.
AVADH SUGAR ENERGY
This counter has been within a range for 5 months, with seriously low volumes, which is a good sign. A breakout above the Falling Resistance Trendline would give a good long trade. For the aggressive traders, an entry can be initiated on any bullish signal near the support zone @ 390-400, with an SL below 380 on a closing basis.
Breakout Retest Trades
Despite the hammering all around, some scrips are yet to break their previous breakout zones and enter the bearish trend. It might be worth to keep an eye on these and play the upside on any signs of reversal from their previous breakout zones, which have now turned into supports. Have a look.
BHARAT BIJLEE
It is placed near it’s previous breakout zone @ 1650-1710. The chart under consideration here is the weekly chart, adding to the importance and strength of this zone. Longs can be targeted for previous swing highs @ 1990, with SL coming below 1600 on a closing basis. Check the chart below.
FINOLEX CABLES
This counter is retesting it’s breakout zone @ 530-550. Things to notice that it’s breakout was from a 5-month consolidation with super volumes, and the pullback has occurred on low volume. Similar to the setup given above, longs can be initiated once a sign of reversal occurs, targeting previous swing highs of 610, with SL below 520 on a closing basis.
I hope I have added something to your bucket of trading ideas for the coming week.
Don’t hesitate to leave a comment below if any improvements should be made.
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Disclaimer- Above given ideas are not investment advice. Charts and analysis shared above is purely for educational purposes.
Great work!