Here's a beautiful price action story I am constructing out of Axis Bank scrip's price action today. Please refer the 5-minute chart below. The scrip opened with a slight Gap up. The open candle was a huge bullish candle which pierced a mild intensity supply zone marked by red horizontal box. But price stalled near trend line joining higher highs from previous sessions.
Analyzing pivots, a higher pivot relationship and smaller CPR was in place for current session. That implies trending day. I even made a note of significant supply zone lying ahead higher near 695 levels. I expected price to trend higher. But price trended downward.
I have marked significant points of interest that make up a story today. Please bear with me for a while.
1 - Candle that nullified bullish expectations.
2 - This candle brought back bullish outlook again as it took support on the supply zone. But, it ended three-legged up move. RSI found resistance near the ceiling of bearish region at this point.
3 - This bearish candle nullified bullish expectations of 2nd candle
4 - First sell opportunity with stop above candle 2
Price did give a 2nd pullback opportunity near the conjunction of pivot ‘P’ and support turned resistance zone which I have marked on the chart. The target was fixed based on pivot 'p' and 200-MA conjunction. Price cleanly finished the target as well.