1) For Cairn to get the first Impulse wave, it must get support from Nifty, which is in a strong downtrend now...Cairn cannot be expected to bounce in a strong bearish nifty
2) The last candle is a bearish engulfing...which is a risky proposition for taking a long position immediately..
On the other hand, since the price in the last session went to 202 and got strong rejected, shows 200-202 is a strong support. However, I expect Cairn to go down to 202-202 slowly and then with Nifty turning around, it should then go up in its first Impulse wave..
I am not going to question the reverse .. why can't it make new highs when nifty makes lows?
I am not expecting Cairn to go up or down, just following price action. I don't know if goes down to test 200 again or not - but current price action tells me it will not revisit 200
There were subtle signs available though to a trader
I am a price follower and not a predictor. For me it was good trade setup - well entered and well excited within pre-defined risk parameters.
Give me 10 such setups and I will take them all.