In this article, I would like log a beautiful case study of
Axis Bank. Below is the 15-minute chart of Axis Bank. For the past two days the
stock is falling. Yesterday price closed at 707. A significant Support is
present near 693 - 692 levels downside. I expected the continuation of
downtrend towards 693 levels. Please refer the 15-minute chart below.
Now, take a look at the small Bear Flag towards the left side of the chart. That's where the price closed yesterday. This pattern augmentd my expectation.
So this morning I looked for bearish confirmations if any. And the stock opened Gap down and an opportunity presented itself near 703 levels. Now let's see the 5-minute chart of the same stock.
We can see a Bear Flag here. The price opened below the lower band of Bear Flag signaling more downside. The opening candle is a High-Wave candle. In such openings we must wait for confirmation candle for directional signals.
I conceived a trade for testing as it was too early to enter a trade for my trading personality. Price got resisted near 704 zone.
A strong Bearish candle after High-Wave reinforced the bearish sentiment. The Trade had 1:3 Risk-Rewards ratio. We can also observe, the price offered another opportunity to go short below S1. Also observe S2 level acting as Resistance during the day. Price hit S3 pivot level.