mindzap
Long

HINDALCO showing strength

NSE:HINDALCO   HINDALCO INDS
Took support from the clouds and respected 50 EMA and moving up. Took an entry at 245. First target is 263 and second target 275. Expecting this run to make new highs. Stop at 239.
Trade active
Trade closed: stop reached
it has resistance around 254
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mindzap ravi_kumar
@ravi_kumar, Yes that is right, I didn't mention it because - If you check the last two swings from approx - 226 and 231. They got exhausted at 247 and 254. That is about approx 20 points. The current swing is from 238. Hoping this will take the price to above approx 258. Last two times 50 ema was not respected. This time around it is respecting the 50 which means there is considerable interest in the market for that price. All said if 254 gets rejected and there is run in hourly to downside, I will bail out. Thanks for pointing.
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@mindzap, Buying is happening with decent volumes
risk reward is in favor of buying
+1 Reply
mindzap ravi_kumar
@ravi_kumar, Thanks for the comment, yes you are right. However, my above response is not so correct and requires some clarification. Last two swings it went up by 20 points doesn't mean next time it will happen again. Also, I have set up the stop at 238 which means that need to be broken to exit, a run in hourly to downside is not the sign to exit.

A normal market move exhausts after 2 ATR. The last two swings were normal market moves. A quick look at OI suggests that 8M contracts believe market will fall and 4M contracts believe that markets will go up. So that is the pain which can fuel the rally to the upside. 254 is a resistance from daily and should be watched carefully. Adding on to the above there is a sort ATR contraction happening along with respecting 50 ema. Contraction leads to expansion. These build the case.
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