20 minutes into trading a short opportunity occurred in Auropharma scrip today. In the last hour of yesterday session, price fell down breaching 666 levels by breaking a rising trend line. This morning price opened Gap up. The open candle can pretty much be called as High-wave candle. The up wick of open candle is little longer. This indicated weakness of bulls. Any bullish plan could be conceived only if price took off high of open candle. Please refer the 5-minute chart below.
Within 15 minutes price fell down to pivot ‘p’ and retraced back a little above open price only to find 666 levels resistance zone marked by a horizontal box. A pull back entry opportunity was in place. Price was below 200-MA as well. Stop could be fixed above 200-MA. It was difficult to pull the trigger that early into trading. However, price fell down in next one hour filling the morning gap and reaching yesterday session close level.
Price stalled near 654 and in 4-minute chart a Dragon Fly doji candle occurred (not shown here). Additionally, there was price-RSI divergence. There was a buy opportunity with favorable Risk-Rewards ratio. The target could be fixed near the confluence zone of pivots ‘P’ and ‘p’. Indeed, price finished the target though rising sluggishly.