Reliance Infra & Vedanta- Trading Ideas with ‘Sell’ signal on Charts 5/5 (1)

Swing Trading

Date Posted-03/01/2019

(1) Reliance Infra:

Weekly Charts of Reliance Infra display a Bearish Engulfing Pattern. Bearish Engulfing is a pattern of two candlesticks consists of a small white candlestick with short shadows followed by a large black candlestick that engulfs the small white one. Presence of this pattern signifies the strength of sellers and indicates upcoming lower levels. Short term traders shall focus on shorting this counter. Fresh shorts may be initiated below the immediate support of 287.50/-.

Technical pattern: Bearish Engulfing- Weekly

Action
Trigger Price
Stop Loss
Target 1
Target 2
SELL <287.50 295 279 271

(2) Vedanta:

Metals Sector has been an under performer, lately and all metal stocks are going through a Bearish Phase. I discussed my bearish view on Tata Steel for short Term and in the last session , the stock has already hit its 52-week lows ( Check this link for short term targets of Tata steel).
Vedanta is also one of the metal stock which is trading in a negative trend since the start of 2018 and has lost almost 50% in last 12 months. The selling pressure in the stock is consistent and the stock is forming Lower highs and lower lows in a harmony which signifies a negative trend set in motion. Recent sell-off in last two sessions is further accompanied by high volumes and prices have moved past the middle band of Bollinger which indicates negative sentiment.

Technical pattern: Tagging Lower BB Bands

Action
Trigger Price
Stop Loss
Target 1
Target 2
SELL <187 193 179 171

*The analysis is based on closing prices as per 3rd January, 2019 and Trading levels mentioned in the above post are valid for next 30 trading sessions

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Author: Traders' Chowk

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