Ichimoku Indian Stock Trade of the Week 11-18-2013 : RELIANCE INFRASTRUCTURE LTD., Sell

On Nov. 18, 2013, we received an Ichimoku 3 multiple time frame sell email alert on Reliance Infrastructure Ltd. for the Indian Stock Market.   The email is shown below:

The email alert was for a break out of the stock 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 was at Rs 414.09.  Initial stop of Rs 420.25, a target of Rs 381.50 and preserve mode of Rs 400.25 was set.  That gave us a  risk of Rs. 6.06 per share. The Entry, Initial Stop , Preserve Mode 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 hit the anticipated preserve mode, thus bringing our current stop, below the entry point. By bringing the current stop to below the entry point, now it is a free trade. If the price turns around and goes up from here, there will be a small profit and we will be traded out. If the price continues as per the anticipation and hits the pre set target, there will be a profit of Rs 32.49 per share. This trade would give a Risk to Reward Ratio of 1 : 5.38. Here is the chart setup:

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About the Author Vinesh Midha