Nifty - Cup and Handle - Pattern

Nifty 50 IndexNSE

Description

⋅ May 17, 2020 9:22 AM

Nifty break 9500 - with Good Volume. Then the Bullish view can be created

In 1 hr chart the H&S pattern is formed at it's already breaked 9100 .

The Open Interest is higher in 9000 Strike price and 10000 Strike price for the month-end , which means the nifty will trade around consolidated phase between 9100 to 9500.

Hence, my strategy to place trade in Nifty as below:

Selling Option

Sell - 8700 PE and 8500 PE

and

Sell - 10100 CE and 10200 CE

Disclaimer: Kindly do your own analysis before executing the trade

Cup And Handle

Comments

Tarun_Kumar98

⋅ May 18, 2020 2:50 AM

Sir, as per my knowledge the cup and handle pattern is a continuation pattern and not a reversal pattern.

Caapinves

⋅ May 18, 2020 2:56 AM

@Tarun_Kumar98, As per my thought reversal pattern occurs after a prolonged downtrend and reverses the prior trend.

Tarun_Kumar98

⋅ May 18, 2020 3:22 AM

@Ashok_Rajkumar, my point is that cup and handle pattern is not a reversal pattern at all. So how can you make a cup and handle, after a downfall?