TATASTEEL futures contract closed just below the recent bracket low, is it a breakout? may be yes, may be not.
Let us analyze the context.
The breakout attempt on the upper edge of the bracket failed on Friday. And now it closed below the bracket low.
This failure at the top may have attracted sellers, odds favor a break down and vertical move.
But it may pull back into the bracket and continue to trade sideways.
So important reference point for Tuesday is 401.50.If we do not see an upward Open test drive or Open drive from/below Monday low, i.e.395.80, this is a good reference point to initiate short trade.
If the open indicates strong sellers, like open drive, then enter short around 395.80 reference point.
Let us analyze the context.
The breakout attempt on the upper edge of the bracket failed on Friday. And now it closed below the bracket low.
This failure at the top may have attracted sellers, odds favor a break down and vertical move.
But it may pull back into the bracket and continue to trade sideways.
So important reference point for Tuesday is 401.50.If we do not see an upward Open test drive or Open drive from/below Monday low, i.e.395.80, this is a good reference point to initiate short trade.
If the open indicates strong sellers, like open drive, then enter short around 395.80 reference point.
No comments:
Post a Comment