India50: Small Correction in Bullish Channel Continuing
The daily candle chart below shows the price history of India50 over the medium term. This Contract for Difference (CFD) aims to track the underlying price of the CNX Nifty broad market index in India, and is trading near 7980.05 around time of publication today.
The pullback below the psychologically important 8,000 level earlier today was cited by Reuters India, within the last hour, as the bearish momentum had picked up. With the pullback underway, a small correction should follow within the context of the overall uptrend in the bullish channel (as seen in the attached chart below).
While this is the first time that the India50 CFD has been reviewed in the Ideas You Can Trade series, the Indian Rupiah (INR) currency has been covered on a number of ocasions in the WorldWideMarkets Community.
The September 8th high of 8,207.00 still remains a resistance barrier to further upside, whereas support should exist under today's low near 7,950, and further below near 7,850.
Below are examples of how to trade a bearish continuation or a bullish reversal:
1. BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ 8137.00 with a Limit to take profit @ 8204.00 and a stop-loss @ 8089.00 Risk/Reward Summary: Limit risk = +67.00 Profit / (-48.00) stop-loss risk = Gain to Loss ratio = 1.39
2. BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ 7933.00 with a Limit to take profit @ 7862.00 and a stop-loss @ 7978.00 Risk/Reward Summary: Limit risk = +71.00 profit / (-45.00) Stop-loss risk = Gain to Loss Ratio = 1.57
Medium Term Daily Candle Chart Zoomed in:
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