The Index in a 15 day time frame at closing basis made an ENGULFING Pattern. Engulfing Pattern is a candlestick pattern which indicates a reversal in current trend. The formation of the pattern where it exists is the most important thing to notice while trading candlesticks patterns.

In our scenario the pattern has been formed near the support zone. The only concern in entering a buy side would be the trend, as the trend is negative and the sellers are looking aggressive at this point. There is a favourable risk reward ratio only if the index on an intraday basis closes above 8915 levels. If the Index is able to close above this level we can enter a long position for a limited point with a SL of 8875 for a TP of 8960-8990.

For confirmation if the RSI needs to trade above 43 on a 15 min time frame with index trading above mentioned level. The MACD needs to close above 0 and the faster EMA should support the trend.

Advice : Only Buy if above mentioned conditions are fulfilled.

CHINA H SHARE

Nov 07 2021