During a positive trend a bearish engulfing candle has appeared. If there is drop in price below the previous day lower tail we can take short position.
Since the previous support is at 562.10, we can restrict the target to this and accordingly we have to reduce the stoploss limit lesser than the previous day top, in order to maintain the risk to reward ratio around 1.
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Stock Ticker – NSE: MCDOWELL-N – United Spirits Ltd. – CONSUMER GOODS
Bearish Trade plan:
Entry Level 577.70 Target 562.1 Stoploss 593.6
Analyst Rating – :4/5
View Posted on 2019-07-19
Hi Mohan, good find. Im just wondering how did you manage to find this bearish engulfing stock, as it is not mentioned under candlestick in stock scanner today. Finding it difficult as i have just started with the stock scanner.
Hi Karthika, thanks for your appreciation. I am having a habit of checking nifty top companies every day. That’s how I came across this. But before doing this I will start with our stock scanner only, it helps us to approach the market in a focused manner. After stock scanner I will check nifty top companies.
Thanks Mohan for the suggestion, It will help us.
Welcome Venkatesh Sir.
Thanks for replying and for the tip Mohan! Will try to follow that in future!
Welcome Karthika.