INOXGREEN : Precision Trade Setup with Dual Scenarios

28 nov 2024

INOX GREEN LIMITED 📊

1. Key Levels

1. Deep Retracement Zone (₹142-132):
   
   This zone represents the 113-127% retracement, often considered a hotspot for institutional buying.
   Price stabilization is likely due to the combination of technical demand and psychological support levels.
   
2. Stop Loss (₹126-121):
   
   Failure to sustain above this zone invalidates the demand setup and signals further downside momentum.
   
3. Targets:
   
   First Target (₹180-185): Marks the Change of Character (ChoCH), indicating potential trend reversal.
   Second Target (₹200-206): A significant resistance zone, where selling pressure might emerge due to extended retracement.
   

2. Trade Setup

1. A. Long Trade Setup:Why Long?
   
   The market is completing a Wave 5 structure near the demand zone.
   Reversals frequently occur here, often accompanied by signs of downtrend exhaustion.
   Entry: Near ₹132-127, after confirming bullish candlesticks or rising volumes.
   
   Stop Loss: Below ₹121, to minimize risk if the demand zone fails.
   
   Targets:
   
   ₹180-185: A breakout here confirms buyers are regaining control.
   ₹200-206: Extended retracement zone where resistance may develop.
   
2. B. Short Trade Setup (If Demand Fails):Why Short?
   
   A breakdown below ₹121 confirms the demand zone failure, signaling further downside momentum.
   Entry: Below ₹121, after a confirmed breakdown.
   
   Targets:
   
   ₹100-90: The next significant support levels.
   Stop Loss: Above ₹127, to protect against losses if the price reclaims the broken demand zone.
   

3. Confirmation Signals

1. Bullish Reversal Indicators for Long Entry:
   
   Candlestick patterns (e.g., hammer, bullish engulfing) near ₹127-132.
   Volume spikes during upward moves suggest institutional buying activity.
   Break of Structure (BoS) above ₹150 confirms a bullish trend reversal.
   
2. Bearish Breakdown Indicators for Short Entry:
   
   Price closes below ₹121 with high volume, confirming demand failure.
   

4. Risk Management

1. Why Manage Risk?
   
   Reversals or breakdowns may fail; a predefined Stop Loss limits potential losses.
   
2. Risk-to-Reward Ratio (R:R):
   
   Maintain a minimum R:R ratio of 1:2 for favorable trade setups.
   
3. Position Sizing:
   
   Limit exposure to 1-2% of your total capital per trade to manage risk effectively.
   

Why This Plan Works

Elliott Wave Alignment: The chart indicates the completion of a bearish Wave 5 structure near a demand zone, signaling a reversal opportunity.
Retracement Zone Logic: The 113-127% retracement zone is a proven technical area for trend reversals or continuation patterns.
Clear Confirmation Criteria: Waiting for volume spikes, candlestick patterns, and BoS ensures higher probability entries.


Disclaimer:
I am not a SEBI-registered analyst. This trading plan is for educational purposes only. Please do your research or consult with a financial advisor before trading.

9 dic 2024

Trade attivo

First Target Achived