Futures Trade | ACC has formed a bearish engulfing candlestick pattern at the supply zone 

Stock Market

BK Training

ACC has formed a bearish engulfing pattern near its previous high. The price is facing overhead resistance. RSI is losing momentum and forming negative divergence. The Bollinger bands suggest fizzling out of the current upmove. All these observations are seen in the daily time frame. A short trade can be taken in futures (prices given here are as per spot) below 2640 (preferred with an equal lot hedge of 2640 Call option, premium approximately 56 - 52/-(buy as a hedge) along with the short trade. The price can fall down to 2570 and below that, it can fall down to 2540 - 2490. The stop-loss will be above 2695 on a daily close basis. Holding duration 2 - 3 days. The trade should be ignored if prices open with a gap up or down before initiating the trade.

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