In today’s article we are going to discuss about a wonderful Swing Trading Opportunity, which we found in HDFC LIFE. I was tracking this stock since one month and waiting for the correct timing to enter the trade.
When there was a hype in the market for HDFC group. Each and every HDFC group stock was breaking down on daily basis. So when i was analyzing each stock of the group i found HDFC life at a very crucial levels. Immediately i added this stock into my watchlist.
Why HDFC Life is selected for Swing Trading Opportunity ?
Every individual have different method to enter a swing trade. Mine is very simple and easy. So let me explain why HDFC life for Swing trading opportunity. To avoid noise i took weekly time frame. All time high of this particular stock is close to 760 levels during the month of August 2021. The stock has hit badly by market and came to levels of close to 490 during the month of March. Please look into the chart for better understanding.
Stock took a very wonderful support at 490 levels. Which is exactly the support zone on weekly time frame. If you also check the RSI indicator its in oversold zone. The same situation occurred in between March and April 2021. If we keep the historical data also this is the correct opportunity to enter the trade.
We saw two things in this trade. one is Support Zone and the second is RSI indicator. Both we saw in the weekly time frame. By taking weekly chart we are clear that we need to hold this for few weeks or months to get the best results.
Entry and Exit Levels :
I entered the trade at the levels of 529 on Average. I am very clear with the stop loss of 490 Levels. So if by any chance the stock closes below 490 levels on weekly time frame. I will exit the trade without any second thought. So as of now My entry Levels and Stop loss are explained.
When will i book the profit in case the stock moves in my direction. The above input shows am ready to take a loss of 7.5% so i should achieve at least twice of my Stop loss. So the target is 15% from my entry point. Looking at the chart i believe the stock can move anywhere close to 630 levels and also it can touch all time by september 2022.
Disclaimer :
People reading this article should be clear that this blog is for educational purpose only. I am not SEBI registered advisor. Many might think why the blog is posted after the stock has took a runup from the entry levels. This is done so that people reading this article should not blindly follow the above said. Please do you own research before taking any investment decision.
If you like this article do checkout my previous blog on support and resistance. Click Here