NIFTY opened with a gap-down of over 200 points, immediately setting a bearish tone. During the first half of the session, price moved within a declining channel, respecting lower highs and lower lows.
Around 11:50 AM, the index broke out of the descending channel, triggering a recovery attempt. Price then moved toward the 25,600 resistance zone, which had been established in the morning. However, the breakout failed to sustain, and NIFTY retraced back toward the 0.5 Fibonacci level.
From that level, price attempted another push toward 25,600, but this time it stalled near 25,585, forming a lower high. This failed re-test marked a structural shift back to weakness. From there, the index gradually declined for the remainder of the session, with a brief consolidation in the 25,530–25,500 zone before continuing lower.
Trading Perspective
The session offered three rewarding opportunities:
- Breakout of the descending channel
- Failure to sustain above 25,600 resistance
- Failed resistance re-test (lower high formation)
Technically, the third setup was the most rewarding. It was effectively the second re-test of a resistance level formed earlier in the morning, making it structurally stronger.
I was able to participate in the second setup, though not fully due to trailing stop-loss adjustments. While the exit limited potential gains, using stop-loss consistently remains a priority, and I will continue refining my trailing strategy rather than abandoning discipline.
The third trade, which had the strongest continuation, occurred in two sharp 5-minute candles of nearly 30 points each. In hindsight, the move appears obvious. However, in real time, the speed of the drop felt risky and extended. I waited for a re-test that never came. Instead, price consolidated briefly and dropped again in another impulsive move.
At the moment, the risk perception outweighed the reward, so I chose not to take that trade.
Reflection
This session reinforced two things:
- Failed resistance re-tests are often high-probability continuation setups.
- What looks obvious after the close can feel uncertain in real time — and respecting that risk perception is part of disciplined trading.