There were two beautiful opportunities in SBIN chart today. Let’s see how the first opportunity panned out.
SBIN opened Gap up. The open is near R1 pivot as can be seen below the chart. The first 5-minute candle opened above R1 and it had wick on upside. Please refer the chart below.
Now a trader must wait for few candles to make sure what's happening around. And here price started taking support near R1 level.
At 9:45 beautiful Hammer emerged signaling weak bears. A confirmation candle also appeared after this. The Risk-Reward ratio was 1:2. The Hammer also was taking support near 200 MA in this 5-minute chart. Quick entry was must for this trade. But I wasn't able to take this trade.
Later Price achieved the target. Price reached the area of congestion marked by circle seen on the left side of the chart.
Second Opportunity:
Please refer the same chart given above. After the first opportunity, price even went on to touch the Resistance zone near 362 levels. This strong Resistance zone is marked by red shaded box. I watched price action here for another opportunity.
Many candles foretold the fall. Doji, two shooting stars, and one spinning top candle all signaled the fall ahead.
Additionally, there was Price-RSI divergence as well. One
had to be quick. Good Risk-Reward ratio of 1:2 was present. I wasn’t ready to
take this trade either as earlier.
Trade details of second opportunity are as follows. Entry @ 361.4, Stop @ 363.2, and Target @ 357.5
Swift fall followed which can be seen from the chart.