Doubt Relief !!

[aca_trader]

Hi karthik,

I saw the chart you have put. Quite a fall today . Ok back to the chart I do not think it is a descending triangle. It looks more like a broadening formation with a flat top which should normally have a upside break as it shows accumulation but then no pattern is a guarantee and a reverse break is even a better opporunity to short as ppl get stuck who took position b4 the pattern is completed. Please correct me if i am wrong.

Rgds

Rahul

Hi Rahul!

No doubt, it's usually referred as a broadening traingle but odds havily favour besrishness in case of right angled broadening traingle formations irrespective of whether the horizontal line is acting as support or resistence.

In pattern like one shown today, if price penetrates the upper resistence line, the stock will move up but such instances are very rare.

Also, today's fall was classical in the sense that Magee suggests shorting on the top after third reaction point and the fall happened precisely in similar manner.

Best Regards,
--Ashish

 

[karthikmarar]

Rahul, Ashish

ooops, I did goof up on this.. . Right, it is more of a broading triangles tough not a classical one. But like ashish said the break was a classical one, after the third reaction point. Looks like it is time for me too, to take a break . Thanks for the correction.

regards

Karthik

 

[myloginid]

Thanks Karthik

Manish,

Looks like our friend VV has taken a few weeks break. So you have to be satisfied with my answers.

First the time frame of your trade is not mentioned. Looks like you are looking at long term investments. Fundamentals play a more important role in long term investments.

Right now I will look at it technically only

All are in bad shape.

Hyderabad Industries - This has been in a down trend from last September. From 600levels it had fallen to as low as 220. It recovered smartly in July, but could not take out the resistance around the trend line and has fallen back to 290 region and currently moving sideways. I am enclosing the chart. Good example of the resistance offered by the trend line. I would stay away from this till the trend line is broken and an up trend is established.

Jindal Saw pipes Again in a downtrend from March. Currently showing recovery. Would be prudent to wait for the break of the downtrend line. Chart enclosed.

Nirma the down trend line clearly broken and the stock is inching up. Better to buy above the resistance around 415.

On the contrary if you are looking at long term investments with three to fours years you can look at the fundamentals and pick up some these as they are quoted low.

Regards

Karthik

 

[rahulg77]

Hi Rahul!

No doubt, it's usually referred as a broadening traingle but odds havily favour besrishness in case of right angled broadening traingle formations irrespective of whether the horizontal line is acting as support or resistence.

In pattern like one shown today, if price penetrates the upper resistence line, the stock will move up but such instances are very rare.

Also, today's fall was classical in the sense that Magee suggests shorting on the top after third reaction point and the fall happened precisely in similar manner.

Best Regards,
--Ashish

Hi Ashish,

I guess I should have studied Magee rather than Martin pringd price patterns . Cause in Martin prings price pattern explained he had explained and given examples that broadening formation with a flat top is accumulation and with a flat bottom is a distribution. I guess thats why they call edward and magees a classic.

Regards

Rahul

 

[Anupama Singh]

Thanks Karthik for the reply..

Anu

 

[aca_trader]

Hi Ashish,

I guess I should have studied Magee rather than Martin pringd price patterns . Cause in Martin prings price pattern explained he had explained and given examples that broadening formation with a flat top is accumulation and with a flat bottom is a distribution. I guess thats why they call edward and magees a classic.

Regards

Rahul

Both of them are good author and if theer are contradicting opinions, the best way is study such charts/patterns and find out what is really working in the market. You did good to yourself by reading Pring and should not be worried about it. Lets do some reaserch and find out for ourselves. Afterall, there is a time gap between Magee & Pring as well and markets do change with time as we are all aware.

Best Regards,
--Ashish

 

[jraj]

Hi Karthik,
Could you give your comments on :
1.NOIDA TOLL BRIDGE
2.JAYANT AGRO
3.MCLEOD RUSSELL

Do you think it's okay to invest in these now?

Thanks,
Jay Raj

 

[karthikmarar]

Hi Jay Raj

Noida toll bridge : This has been moving side way for some time. Last week it may a nice move with increased volume. The move failed to sustain and is in a pull back mode. The MACD is positive and the ADX is also looking up. Better to wait for it to cross 42 which is tough resistance line.

Jayant Agro: This has been moving sideways from Jun. Wait for a breakout above the trading range of 57. Looks unlikely in the near future.

Mcleod russel: This was in a up trend till the beginning of September and is moving side ways now. Presently the MACD crossed below the signal and the trix has turned down. Wait for it to move beyond 131. The region between 131 and 141 will find lot of overhead supply


Regards

Karthik

 

[Saint]

Good to see the resurrection of this great thread,Karthik.......great going as always!!

All the best!
Saint

 

[kapp]

Welcome karthik. taking on the mantle from amitbe? here is me wishing you all the very best in your attempts. Thia forum cannot do without guys like you and the rest out there. cheers.

same here