Asian Paints: Trend analysis (Long bias)

23 Mei 2020

Weekly Time-frame:
Prices took support from long term support level and week ended with long wicked bullish candle. (long bias)

Daily Time-frame:
While analyzing weekly long wicked bullish candle, on daily time-frame prices broke the down trend-line with strong bullish momentum candle which signify possible trend change.

4H Time-frame:
After breaking down trend-line on daily time-frame, prices also broke the immediate resistance zone/level with the momentum and made a higher high which confirms the up-trend.

So, wait for pullback to occur towards support zone (above resistance zone which will act as a support now) for safest long trade.

Conclusion: This price action on every time-frame confirms long bias so one can initiate a long trade once prices come out of this zone with stop-loss below support zone keeping own risk to reward ratio in mind.

25 Mei 2020

Catatan

Kind of similar setup on ITC also.

31 Mei 2020

Catatan

Many of trader friends were waiting for price to pulls back exactly into support zone, so they missed the long trade.

Let me clarify for future opportunities, deepness of pullback depends on number of factors like strength of trend, direction of broader market, news etc.

Here in case of Asian paints, price pulled back till (Rs. 1595.95) 38% of Fibonacci retracement levels as up-trend was strong and also overall broader market was bullish for last 2-3 sessions. At this level, price formed pin bar candle on 4H Time-frame which also rejected the 50-EMA and this gave us a perfect entry at RS. 1629.90 after original up-trend resumed on lower time frame (1H time-frame).

Note: According to me, we can not predict the price levels as tons of trader mind are driving the price at a time. We should always consider current price movement for our trading decision.

4 Jun 2020

Catatan

Possible second entry: As price pulled back near demand zone ranging 1631-1595.95.
Just wait for price to resume original uptrend and then enter.