Enquiry is learning
Thank you Prasham, some questions bring more life into works like this. Trading is both an Art and a Science. Enquiry boosts interest.
One more applause for researching on your own than blindly taking the calls. Research kindles the learning process. In the long run it is knowledge that is king. Trading industry gives more importance to this.
We follow the Keep it Short and Simple policy in our approach to markets. We do not use RSI or Stochastic. Instead we use only MACD Lines and MACD Histogram. Many in the trading activity presume MACD as a laging indicator. But it is a very perfect indicator to follow trends.
These are not intraday trading calls, while all these stocks are short to medium term position calls. So, volume was not considered a criteria here. All these stocks fall into the CNX 500 list, which have undergone multiple screening process and rating.
It is what that is in our iner self is that reflects outside. You have had your own way of analysis and that was reflected in all the stocks. The same way, it is with what we think about our trades that materialize in reality. If you have full confidence and belief on the position you take. That will surely be a winning trade.
When does this confidence and belief come. It is only when you have followed your system 100%. So, it all finally settles with psychology. More of it later.
SUZLON, does not fit into a trend. It belongs to the Industrial Sector, which leads to the Industrial Engineering sub-sector and then to the Heavy Engineering Industry group.
INDUSTRIAL Sector has retraced bearish divergence on 22nd January 2010 week, with a very high range of 11% fall on its index value and taking off close to 2 months bullish moves in a single week. But the weakness got stalled with a strong bottom on the MACD Histogram and the Index turned up. In the present move of 8 weeks, the index was not able to give a new high. While it has moved in the sideways pattern. Both MACD Lines and MACD Histogram have turned flat along with price. MACD Histogram is still below zero. This indicates that in any turn of event this index is going to get a big hit.
We do not negate a possibility of a bullish divergence on MACD lines following the next fall. The same pattern is mirrored on the Industrial Engineering sub-sector chart. Whereas the Heavy Engineering Industry Chart has taken to 3rd lower peak on MACD lines and the same pattern on the price move too.
While all the index charts show side ways pattern with upward bias. SUZLON, chart is showing a very clear non-trend with a negative bias. SUZLON along with PRAJ are the weakest stocks of this Industry group. These are best shorting candidates once the indexes permit short.
SUZLON made a high of 145 and a highest close of 131 in June 2009, after that it was not able to reach those high levels. While the peers in this group atleast managed to re-test highs to form bearish divergence.
Our analysis on SUZLON says a big no-no to either go long or short. Once again it is our view, use your own analysis to decide. There are very good stocks which have the potential of a multibagger even now.
Thank you once again for asking a question and giving enthusiasm.
Thank you Prasham, some questions bring more life into works like this. Trading is both an Art and a Science. Enquiry boosts interest.
One more applause for researching on your own than blindly taking the calls. Research kindles the learning process. In the long run it is knowledge that is king. Trading industry gives more importance to this.
We follow the Keep it Short and Simple policy in our approach to markets. We do not use RSI or Stochastic. Instead we use only MACD Lines and MACD Histogram. Many in the trading activity presume MACD as a laging indicator. But it is a very perfect indicator to follow trends.
These are not intraday trading calls, while all these stocks are short to medium term position calls. So, volume was not considered a criteria here. All these stocks fall into the CNX 500 list, which have undergone multiple screening process and rating.
It is what that is in our iner self is that reflects outside. You have had your own way of analysis and that was reflected in all the stocks. The same way, it is with what we think about our trades that materialize in reality. If you have full confidence and belief on the position you take. That will surely be a winning trade.
When does this confidence and belief come. It is only when you have followed your system 100%. So, it all finally settles with psychology. More of it later.
SUZLON, does not fit into a trend. It belongs to the Industrial Sector, which leads to the Industrial Engineering sub-sector and then to the Heavy Engineering Industry group.
INDUSTRIAL Sector has retraced bearish divergence on 22nd January 2010 week, with a very high range of 11% fall on its index value and taking off close to 2 months bullish moves in a single week. But the weakness got stalled with a strong bottom on the MACD Histogram and the Index turned up. In the present move of 8 weeks, the index was not able to give a new high. While it has moved in the sideways pattern. Both MACD Lines and MACD Histogram have turned flat along with price. MACD Histogram is still below zero. This indicates that in any turn of event this index is going to get a big hit.
We do not negate a possibility of a bullish divergence on MACD lines following the next fall. The same pattern is mirrored on the Industrial Engineering sub-sector chart. Whereas the Heavy Engineering Industry Chart has taken to 3rd lower peak on MACD lines and the same pattern on the price move too.
While all the index charts show side ways pattern with upward bias. SUZLON, chart is showing a very clear non-trend with a negative bias. SUZLON along with PRAJ are the weakest stocks of this Industry group. These are best shorting candidates once the indexes permit short.
SUZLON made a high of 145 and a highest close of 131 in June 2009, after that it was not able to reach those high levels. While the peers in this group atleast managed to re-test highs to form bearish divergence.
Our analysis on SUZLON says a big no-no to either go long or short. Once again it is our view, use your own analysis to decide. There are very good stocks which have the potential of a multibagger even now.
Thank you once again for asking a question and giving enthusiasm.