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Saishayu Option Scalpers Daily Trades,Educational Bearish Engulfing Follow Through- Analysis V/s Reality

Bearish Engulfing Follow Through- Analysis V/s Reality

Bank Nifty Followed Bearish Engulfing Today, What Next?

Bank Nifty Index was on full control of Bears today. Bull’s presence was as if Guest Appearance or rather I should say Ghost Appearance today! They were present, but invisible! Anyways, Bears did what was expected from them. A strong follow through for a Bearish Engulfing on Daily chart! Let’s understand it from the Chart itself.

In above Image, after Bearish Engulfing, we can see a strong follow through on Daily TF. This is BNF Jan 23 Future Chart on Daily TF for analysis.
In above Image, after Bearish Engulfing, we can see a strong follow through on Daily TF. This is BNF Jan 23 Future Chart on Daily TF for analysis.

We can see in the image above, 2 Day’s important support levels, i.e. 30th Dec 22 & yesterday’s (4 Jan 23) Low was critical Demand Zone, once that’s broken, BNF had no turn around. Further during intraday, Perfect support from the level of last 2 week’s Demand Zone.

Short Covering towards end, indicates Bulls were keen defending that support zone. We might have a Sell on Rise for one round tomorrow followed by a Gap up opening. But if Bears want to break further, they must continue & cross this important demand zone. I am also looking for a possibility of an inside bar again tomorrow on Daily TF.

My Today’s Trade Entries are marked on Zerodha Chart below.

In the Chart Above, You may see, I had only first trade on Call Side chasing Open = High on CE side, else it was a just a Sell on Rise market Today!

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