India50: New All-Time-High Reached During Intraday Session as Index Pierces Above 9,000
The daily candle chart below shows the price history of India50 over the medium term. This Contract for Difference (CFD) index aims to track the underlying price of the CNX Nifty broad market index in India. Today India50 last traded around 9028.0, following a fresh all-time-high reached earlier in Tuesday's trading session in Asia (where the underlying index hit 9008.4).
Last time this index was reviewed in Ideas You Can Trade, an uptick had occurred during a pullback from the prior high near 9,000 and that uptick (which occurred during the middle of the bullish channel) subsequently marked the reversal point leading to the bullish continuation that has since unfolded to bring India50 towards current levels - where it hit an intraday high of 9064.8 earlier.
If support can be established above 9,000, that resistance line could changed into a new floor for a continued push higher, whereas a break below that level could signify that the pierced ceiling was just a short term target - and a pullback could extend to find support lower - before moving higher again (as the trend is increasingly bullish).
Below are examples of how to trade a bullish continuation or a bearish reversal:
1. BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ 9055.0 with a Limit to take profit @ 9099.0 and a stop-loss @ 9015.0 Risk/Reward Summary: Limit risk = 44.0 Profit / (-40.0) stop-loss risk = Gain to Loss ratio = 1.10
2. BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ 8869.0 with a Limit to take profit @ 8815.0 and a stop-loss @ 8914.0 Risk/Reward Summary: Limit risk = 54.0 profit / (-45.0) Stop-loss risk = Gain to Loss Ratio = 1.20
Medium Term Daily Candle Chart: