⭐️Target 1 achieved in Honeywell Auto. Gain of 8% Target 2 is ON.⭐️
Breakdown chart as well as follow up chart added for reference. Charts are self explanatory. Entry, Targets and Trailing Stop Loss are mentioned on the chart.
IMP POINTS:
1. This is a short trade, so it can be done only in Future and Options which is more risky than trading in cash.
2. As per chart1,
Breakdown level (Entry point: 34332)
Target1=32125
Taregt2=29837
SL=36840
Lot Size=15
3. Risk= (36840-34332)*15=37620
If this risk is 1-2% of your trading capital, you can enter in the trade. If not, then better to avoid.
4. Target 1 is achieved in first week. Weekly closing price=31512
Gain of 42300/- (Against a risk of 37620/-)
5. Trading in options is more difficult as liquidity may not be enough in this stock.
Further, the trade is on weekly charts and sometimes trades on weekly charts take several weeks before giving some decent move. Time value can eat most of your profits if movement is not sharp in your direction.
It is better to understand all these aspects before entering any trade of this kind.
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