Charts for the Day

[anil_s_trivedi]

Anil Ji,

Considering the above line in bold, are you referring to the bearish divergence in price & RSI?

I have this doubt because ideally a trader whose trading the trend line bounce in ITC would like to see RSI being less than 50 as he's going long.

Dear Bhavya,

Yes the momentum loosing with price, i mean its a -ve divergence. Point here is not only -ve divergence. But for whole past year RSI refrain to attain 70+ readings so raising serious doubts.

In bull markets, RSI trades at 70+ and corrections generally holds above 30. While here its just hovering in between. Similarly in strong bear markets, RSI makes less than 30 readings and bounces generally travel till 60 only.
So this range of momentum is not showing a good stride with price, also prices breaking key trendlines will add more confirmation to the bias.

 

[anil_s_trivedi]

Above is a example of what simple price action keep alerting the investor, its upto him whether to watch or ignore at his own peril...

 

[anil_s_trivedi]

With Reference to above post of Tatachemicals, right now price is in key support zone on daily charts of 405-415...so a bounce here can be expected for those who are into already to have a exit level, if stock shows bearish monthly closing....

 

[anil_s_trivedi]

Tatasteel broke supply line with volume and above falling wedge as of now. Crucial levels marked on chart.

The accumulation pattern shown here. For day traders better to have SL 328 whereas for delivery positions as 320.

 

[anil_s_trivedi]

A simple trendlines and channel analysis on bank of baroda...

 

[anil_s_trivedi]

L&T a capitalgoods heavyweight going on in a symmetrical triangle formation, indicating lack of decisiveness by buyer/sellers. The action will enter narrowing apex region next week. Keep eye on this chart, good trade will be coming soon.

 

[atulharkut]

kindly keep us posted on LT sir

 

[anil_s_trivedi]

The misery of studying chart patterns. This one looks like a possible H&S. But wait...???

A good H&S pattern, comes under a distribution. So a volume distribution is must. For this i need a good run up prior, which is missing here. So it is raising little doubt. That until i see prior run up, how things get distributed.

Only worst case scenario is, when investors fed up with stock on account of stagnation, they want to offload stocks at any price.

So anyways, that trendline support should alarm what is coming in...if at all its on downside...

 

[anil_s_trivedi]

Tech Mahindra after having relentless run showing some sign of intermediate distribution. Stock formed a H&S top and got a broken neckline and retesting going on.

Possible lower tgts will be 490-500 zone. For any sign of strength watch neck line, if sustains good. Levels to watch are 630 / 645-650 / 700.

 

[anil_s_trivedi]

The misery of studying chart patterns. This one looks like a possible H&S. But wait...???

A good H&S pattern, comes under a distribution. So a volume distribution is must. For this i need a good run up prior, which is missing here. So it is raising little doubt. That until i see prior run up, how things get distributed.

Only worst case scenario is, when investors fed up with stock on account of stagnation, they want to offload stocks at any price.

So anyways, that trendline support should alarm what is coming in...if at all its on downside...