Credit Access Grameen on Jun 20, 2023 | Loss of 2100

A long position was made in Credit Access Grameen with the below rationale.

1. Prior trend has been up, the price is above 50, 200-day Moving Average shows the strength of the trend.

2. The price has been in consolidation phase for 19 days.

3. It gave a an aggressive up move on Jun 19 with 8.1% upside move with ~1 M volume which indicates continuation of uptrend.

4. The bullish candle on Jun 19 closed above the 20-day Moving Average.

Trade Details Made the position with an initial risk of Rs. 5000, with a Risk:Reward of 1:4.

Stop loss has been placed at 1245. Expected target will be 1400.

Attaching the screen shot from my broker Zerodha.

Conclusion On 3rd day of the trade, price made a high of 1397, fell 3 points short of our expectations. The breakout happened with strength hence, it was held beyond that, in an expectation to cross 1400. But on June 30 it opened with a big gap down and closed at ~ -6% with higher than normal volume of 12.6 M. Hence, the trade was exited at 1263 with a loss of 2100. Trade lasted for 7 days. Gap down of 4-5% with the opening of the trading session shows the weakness in the price hence, did not wait for the actual stop loss level of 1245.

Below is the screenshot of the trade book w.r.t this trade from Zerodha.

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