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Swing Trading Set-up with JSW Steel

Updated: Nov 21, 2023

ANALYSIS DATE: 03-10-2023

In the dynamic realm of financial markets, making informed investment decisions and executing strategic trades can pave the way to financial success. In this blog, Kavita Agrawal, the founder of Exp-Invest, delves into the ever-evolving world of JSW Steel, a company that has recently garnered attention and sparked a wave of inquiries. Why JSW Steel, you may wonder? Well, in addition to its newsworthy feats, our analysis reveals captivating developments that have the potential to benefit a broader spectrum of traders and investors than initially envisioned. JSW Steel's recent acquisition of NSL Clean Energies, a company specializing in recycling steel scrap, has elevated the spotlight on this industry giant. What makes this acquisition particularly noteworthy is the company's resolute commitment to reducing its carbon footprint and embracing more environmentally sustainable practices in steel production.

In the following discourse, Kavita will scrutinize the intricate tapestry of JSW Steel's chart, meticulously unraveling its underlying trends and potential future trajectories. She scrutinize its performance across various timeframes, seeking valuable insights to equip traders and investors with an informed perspective. The goal is to not only decode the intricacies of JSW Steel but also to provide a toolkit for traders to navigate the ever-fluid world of financial markets. JSW Steel's analysis was conducted on the 3rd of October 2023.


As we traverse through the charts and unveil market dynamics, Kavita scrutinize the enigmatic realm of swing trading. This strategic approach, when executed with diligence and precision, can offer bountiful rewards. However, it requires a nuanced understanding, a well-crafted plan, and the fortitude to adapt and evolve as markets fluctuate.

So, let's embark on this enlightening journey through the world of JSW Steel and the principles of successful swing trading. Your financial horizons may just broaden, and your trading prowess may find new heights. Chart Analysis:

1. Weekly Time Frame:

  • The weekly chart reveals a steady uptrend in JSW Steel's stock.

  • Notably, since July 23, the stock has broken above a key horizontal resistance zone with strong volume, indicating bullish momentum.

JSW STeel Analysis

2. Daily Time Frame:

  • On the daily chart, a strong resistance trend line is apparent.

  • Additionally, there was an RSI negative divergence, which has possibly been negated.

  • Following the peak in mid-August, the stock's price declined and retested the target level, possibly fulfilling the negative divergence's expectations.

3. 75-Minute Time Frame:

  • The 75-minute chart indicates that JSW Steel is within a bullish range on the RSI, suggesting a strong underlying trend.

  • It's essential to note that between August and September, metal sector stocks, including JSW Steel, went into consolidation after a strong rally.

Volume Analysis:

One of the most compelling aspects of our analysis is the volume histogram based on the Moving Standardized Cumulative Difference (MSCD) of the volume. This provides valuable insights into the stock's behavior.

  • High volumes accompanied each price rise, indicating strong buying interest.

  • Conversely, during price declines, such as in several instances on the chart, the volume significantly decreased compared to the last 100 days' average volume.

  • This pattern suggests that the stock experiences a surge in volume during uptrends but sees a drop in volume during downtrends.

Considering the chart analysis and recent developments, here's a potential trading strategy:

  1. Alert Setup: Set an alert for the volume to trigger when it crosses a specific threshold, such as 3.5K, consistently over multiple bars.

  2. Entry Strategy: Consider entering a long position in JSW Steel when the volume alert is triggered, indicating increased buying interest.

  3. Stop-Loss: Set a stop-loss order to manage risk and protect your investment. The stop-loss level can be determined based on your risk tolerance and analysis of support levels.

  4. Profit Target: Define a profit target based on your risk-reward ratio and price targets. Ensure that your profit target aligns with your trading strategy and goals.

Conclusion:

JSW Steel's chart analysis suggests a mixed picture with both positive and negative signals. The recent acquisition and the stock's strong uptrend on the weekly chart indicate potential opportunities. However, the presence of resistance trend lines and previous price declines on the daily chart require careful consideration. By setting up alerts and closely monitoring volume patterns, you can make informed trading decisions.

Swing trading, a popular trading strategy in the financial markets, offers the potential for substantial profits. However, it's essential to emphasize that swing trading without the necessary expertise, assistance, or a well-defined system can be perilous for your capital. Here Kavita also explored the dynamics of swing trading, the risks involved, and how it can be highly rewarding when executed with the right system and assistance, as exemplified by the success stories of our members in the Trade Together program.

She also engage in conversations about stocks that are currently not advisable for new positions, like MAHSEAMLES, VEDL, and GRANULES. Additionally, we analyze stocks such as INOXWIND, including their stop-loss and target levels.


Join my telegram channel: https://t.me/tradewithkavita

To watch more session, visit: https://www.youtube.com/@EXP_Invest/featured

Thank you for reading.

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