
Shorted one lot in Futures.
Pattern: Shooting star on a Tall Building with heavy volumes.
Wave: end of 5th.
William %R: Overbought.
Support: 142 - wick of long white candle
Entry Price: 154.25 (155 in futures)
Resistance: 158.5
Planned exit point : 138.5 (140 in futures) - target achieved
Well, this one was another easy short trade to take up. I happened to see Syndicate Bank rally around 8%, and I even got a call from my broker to buy Syndicate Bank. I waited for 2 days, and then shorted the same.
Reason: I saw a shooting star falling from the sky onto the big white building. This was at the end of the 5th wave and in overbought condition.
The outcome: the white building got burnt.
In this trade, I tried to keep my emotions in control, something which had made me lose a golden chance in Titan (Titan sold off a further 300 rupees from where I closed the trade).
I had kept the 50% fibonacci retracement point as my target. Once achieved, I just closed the trade.
But then, the news of a housing scam broke out, which led to a further selloff in most of the banking stocks.
Though it was target achieved in this case, maybe I should have just held on to my shorts :).
Btw, this was a very profitable trade. And for the first time me, my wife (she had bought a 150 PUT OPTION) and my friend Manju made money on the same stock.
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