Ichimoku Indian Stock Trade of the Week 01-06-2014 : STATE BANK of INDIA and YES BANK, SELL

On Jan. 06, 2014, we received an Ichimoku 3 multiple time frame sell email alerts on State Bank of India and Yes Bank for the Indian Stock Market. The emails are shown below:
01_06_2014_3_SBI
The email alerts were for a break out of the stocks on the bearish side. This breakout setup was emailed through the automated email alert system, as shown above. As soon as the price broke on the bearish side, it had a strong momentum supporting it.    There was an ideal opportunity to take a break out trade.    The entry for State Bank of India stock was at Rs 1705.89, Initial stop of Rs 1763.11 and a target of Rs 1576.82 was set.  That gave us a  risk of Rs. 57.22 per share. The Entry, Initial Stop and the Target was based on proprietary ichimoku strategy. As soon as the price started to move in the direction of the trade, a trailing stop method was applied, again based on proprietary Ichimoku Strategy.  The price is at the preserve mode of 1601.61, and the stop has been moved down and currently is at 1636.88. This gives us a locked in profit of Rs. 69.28 per share. If the price pulls back from this point, we are surely going to be able to encash the locked in profit. On the other hand, if the price moves down to our anticipated target we will be able to encash a profit of Rs. 129.07 thus giving us a Risk to Reward ratio of 1 : 2.26. Here is the chart setup:
01_06_2014_SBI 1
Same email alert and  signal for a sell opportunity for Yes Bank:
01_06_2014_3_YesBank
In this trade as well, as soon as the price broke on the bearish side, it had a strong momentum supporting it. The entry for Yes Bank stock was at Rs 358.24, Initial stop of Rs 366.51 and a target of Rs 327.23 was set. That gave us a  risk of Rs. 8.27 per share. The Entry, Initial Stop and the Target was based on proprietary ichimoku strategy. As soon as the price started to move in the direction of the trade, a trailing stop method was applied, again based on proprietary Ichimoku Strategy.  The price is at the preserve mode of 342.42 and the stop has been moved down and currently is at 351.78. This gives us a locked in profit of Rs. 6.46 per share. If the price pulls back from this point, we are surely going to be able to encash the locked in profit. On the other hand, if the price moves down to our anticipated target we will be able to encash a profit of Rs. 31.01 thus giving us a Risk to Reward ratio of 1 : 3.75. Here is the chart setup:
01_06_2014_YesBank 1
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About the Author Vinesh Midha