The level being traded is origin of recent up move and has engulfed (managed to close above) near Resistance & Supply levels above. This indicates bullishness & that price usually retraces to the zone responsible for the engulf. It is a high probability trading set-up.
—————————————————————————————–
Stock Ticker – NSE: UJJIVAN – Ujjivan Financial Services Ltd. – FINANCIAL SERVICES
Bullish Trade plan:
Entry Level 342.4 Target 366.6 Stoploss 331.7
Analyst Rating – :4/5
View Posted on 2019-06-06
Hi,
A bullish engulfing pattern forms at the end of a bearish trend (minor down trend), and the end of the candle being a big green one that totally engulfs the previous candle but in the above chart we can see both of these conditions is missing.
7/June price behaved exactly as expected with a Low of 344.1 and high of 360.1.
Price retraced & bounced from the zone responsible for engulf also known as Source of Engulf (SoE). Engulf here means a close above, as explained in my trade bias above.
This was my response to Maruti Patil’s view on Ujjivan, which I shared on the forum as well.