Momentum Trades — Trades 1 & 2 — (ONGC & CIPLA) — 7 March 2022

Sriram Balasubramanian
Coinmonks
Published in
3 min readMar 7, 2022

--

Here are my stock trades/set-up explanations & charts

ONGC: Oil & Natural Gas Corporation

Energy, Oil & Gas sectors are bullish, and thus, any energy / Oil & Gas will be an easy hunt if a trader finds the set-up.

How and Why do I trade ONGC today?

  1. The MACD and Stochastics set up on the daily chart were looking promising.

2. Energy, Oil & Gas is a bullish sector

3. RSI was above 50, which gave me some confidence

4. MACD had a Golden Cross (GC) above the zero line

5. Volume was picking up and went above its moving average

I usually keep a stop loss of about 5% (unless the stock price is very high), and for ONGC, I entered the trade with stop loss at previous candles close. I trade with a risk/reward of at least 2 to ensure my overall portfolio remains profitable.

Let’s call it luck, and the stock zoomed over 12% to close the day.

An important question: Since the stock zoomed over my expected R/R ratio, did I sell it?

Not yet, as I am still bullish on the stock, and until the momentum fades away (say 5 to 10 days), I will keep a watch over the position.

CIPLA:

This stock has been ranging over the last six months. Ranging stocks are best to trade once we follow the stock set-up closely.

How and Why do I trade CIPLA today?

  1. The MACD and Stochastics set up on the daily chart were looking promising.

2. Ranging stock

3. RSI was above 50, which gave me some confidence

4. MACD had a Golden Cross (GC) almost at the zero line

5. Volume & stock price has increased in the past five trading days yet did not exceed the…

--

--

Sriram Balasubramanian
Coinmonks

Building WIBE to enable people to trade stocks to generate consistent cash flow. I enjoy writing on Wealth of all types!