CHCC Follow-Up Short-Sell/Exit Trade: A Fresh Entry Strategy
CHCC has been navigating a consistent downtrend within a clearly defined channel since December 2024. The trading pattern shows that the downward volume gradient has been more robust during down waves compared to the up waves. This indicates a stronger bearish sentiment in the market.
Recently, the price has once again faced resistance at the supply zone located at the top of this channel. This rejection strengthens the case for CHCC being a high probability short trade opportunity for traders.
🚨 Technical Short-Sell/Exit Call for CHCC 🚨
Traders looking to capitalize on this trend may consider the following strategy:
- Short-Sell/Exit Zone: Rs. 270-260
- First Take Profit (TP1): Rs. 250
- Second Take Profit (TP2): Rs. 222
- Stop Loss (SL): Above Rs. 285 (on a daily close)
Please note that these prices refer to the ready market.
📊 Risk-Reward Analysis
This setup offers a high conviction opportunity with an attractive risk-reward ratio of 1:3.3. To manage risk effectively, it is recommended to enter and exit the trade in three parts within the given range. It is advisable to close at least 50% of the position size at the first take profit target (TP1), then trail the stop loss to protect any accrued profits. This is crucial to mitigate against potential unforeseen market conditions that could otherwise erode gains.
This strategy offers a structured approach to capitalize on the prevailing market trends while managing risk. With careful execution, traders can potentially benefit from the ongoing downtrend in CHCC.
Kindly consider this analysis when planning your trades and stay vigilant about market movements to take timely actions.
