JSW Steel share prices have seen significant fall from highs in the past few weeks.
The stock price is finding a base around 280 – 290 for the last several trading sessions. In this process it has made a consolidation by oscillating around those levels.
Last week, it has broken above from that consolidation. This break out may lead to surge of around 7 – 8% in the share prices.
Look at the breakout in the below image. The price have broken above the upper trend line. After that, the stock is trading well above the trend line.
The level of break out corresponds to prices around 280 – 282. Very short term trading can be done in this stock for decent gains.
The stock is expected to move towards 306 – 310 in next 8 – 10 trading sessions. Stop loss for the trade can be placed around 275.
Looking at the volatility in the markets and uncertain environment, it is better to trade in Options. With Options, you can limit your risk to the amount equal to premium paid to buy Call Option.
One may consider buying JSW Steel Call Option 290 Strike at current prices of 7 – 9. Keep a stop loss at 4 and target of 18 – 20.