The Index is trading in a range; a breakout from the range would be an opportunity to enter in the index. The Primary Trend of the Index is upside looking at the monthly, daily and weekly charts. What we are going to trade is a minor trend in the Index. Minor trends are for a few days. The Minor trend for the index is negative and at the low there is a range bound movement forming a rectangle, A rectangle is a continuous as well as reversal pattern, if the breakout is on the downside it would be a continuous pattern and if the breakout is on the upside it would be a reversal pattern in this scenario.

Rectangle is one of the best patterns to trade as the failure rate is comparatively less.

If the breakout is downside we can expect the index to correct as per the height of the rectangle vice versa on the upside.

The RSI was trading in a range a breakout is seen in the RSI has well indicating negativeness.

If the index close below the rectangle and fast MA we can go short on the index with a RR of 1:2

Advice : Opportunity Ahead wait for the breakout on either side. (Expected breakout Downside)

NETH 25

Sep 24 2021