I have mentioned a trade possibility of Tata Steel as there is a rising wedge + negative diversion. Today Some steel stocks has breakout on the upside like JSW steel.. So now there is another possibility builds up that it might break the upper trendline of the Rising wedge.
so now we have 2 possibilities –
Short – Below 628 Targets 615-605-595
Buy – Above 641 Targets 655-665-675 (Though resistance can be at the upper trendline of the wedge) – I prefer to trade when price breaks the wedge.
So keep an eye & Trade best possible setup on either side. Will keep update on Daily Basis on Tata Steel.
Identification of the Trend – “UP or DOWN”
Price is making Higher Highs and Higher Lows –
Trend is “UP”
Price is making Lower Highs and Lower Lows –
Trend is “Down”
Now you have 2 possibilities –
(I) Contra Trade (Against The Trend) OR
(II) Ride with the Trend
2. Trendline/Channel Formation – Making Trend Lines.
Whether Price is Moving in a Channel?
3. Support & Resistance
Check whether Price is taking support at previous
resistance or taking resistance at Previous Support.
Trendline Support & Resistance of Channel.
You can use Fibonacci Ratios too.
4. Candlestick Pattern
Now Check at Support & Resistance which Candlestick
Pattern has been made so that we can take our trade
So Here, in EURJPY – Price is in up trend making higher highs and higher lows. Perfectly moving in a Blue Parallel channel and also has a rising wedge Pattern.
So now we have 2 Setups –
Contra Trade – If Trendline Breaks go short, Price can retest previous resistance at 125.50 levels
Ride with trend – Price currently at Channel (Lower Trendline) Support. Wait for some decent green candle to go long.
Earlier also price moved between the Fibonacci 23.6%-38.2% retracement and again price is testing the Fibonacci 23.6%-38.2% levels.