Observed a trend reversal at the strong resistance zone of Hindustan Unilever.The last day was a red candle day with high volume and with a delivery volume of around 80% which indicates that more people have actually sold it and the red candle has actually broken the recent support line.The RSI also confirms the downtrend by showing a reversal from the overbought region of 70.However, since the primary trend is in an upward direction the downtrend may not sustain for a long time and the market might correct itself in the near time.Hence it is suggested that the trade shall be taken with caution with a short target near to the next support line which is around 913.The stoploss can be placed at the high of the resistance zone and suppose if the stoploss is triggered with a high volume, the losses can be recovered by going long from that position as 951-954 is a strong resistance zone and 954 is the 52 week high.
, , HINDUNILVR
Dear sir
We can trade short based on high vol/delivery, type of candle almost at the long term resistance.The trade may be successful as BB also shows the probable down trend.
Kindly note
1. there is no break down(out) but only a more probable down trend as per data and indicators.
2 . Not to suggest both( long and short) plans in a scrip . Even if the SL is triggered the strength of the up move is to be gauged by vol and type of candle on the date of triggering the SL to frame the long trade plan
Thanks for your feedback , and a breakout of the recent support can be seen-the trade is to be taken only below the low of the candle indicating the bearish trend,otherwise there would be no trade executed and also i have clearly suggested to go long only if the breakout is with good volume.