Learning to catch High Probability Breakouts

[Rish]

Another 52 week breakout CCL products
(educational purpose)

As per CCL product concern, weekly breakout as mentioned above and Daily breakout should close above 237.80...if both matches, then it may react. This is my view, i may be wrong,let us see, how CCL product react in coming days.

Original first breakout was at 55 level, i hope i am right.

 

[amitrandive]

On July 14, 2015 Merrill Lynch Capital Markets Espana SA SV bought 24,00,000 shares of Castex Tech at Rs 343.80 :thumb:

Did Merrill Lynch really buy or sell this stock on the date and at the price you said ????

Check the below image ,probably they brought in 2013 @ 76 rs and sold in 2015 @ 343 rs.

As I am posting this Castex is quoting at 217.Don't think Merrill Lynch would be foolish enough to take at 100+ rs loss with such huge quantity.

Generally such news are leaked out in the distribution phase to get buyers(read scapegoats ).

That is why TA more about price action and not using complex systems.

Simplicity is Elegant !!!

 

[amitrandive]

When market comes to a support/ resistance level, we have to see the type of bars it prints. If it is printing small up/down bars and going sideways, there is a possibility of breaking of that level. But if it is snapping back from that level strongly, that means the level is holding so we take our profits and wait for the crack of another mpl to start a fresh trade. Sometimes the market will break that level and then go back above the PL it broke ( in the form of failure ) in which case we book profits. But if the breakdown is on a strong bar with good volume, that means that the support has been broken ...then we look for adding in our short positions as we are expecting the downmove to accelerate.

The above is fairly objective way of trading,with reasoning and not hunch for our trading actions.


Smart_trade

:clapping::clapping::clapping:

 

[extremist]

these the supply and demand zones ahead.

here we can see tht the second light orange supply zone acting as demand zone for quite a few time.

Better will be if NF manages to break it.

Let's see....

i hope few might have cashed in on the move made by NF.

The Driver pattern rocks......
And see where it taken pause..... exactly at the zone i drawn.

 

[nitingosavi]

RCOM... looks positive for atleast short term.
look at the chart. hope it will pass 72-73 zone in this week.

Yes bank may have a downside breakout of the range..

sry cant post chart. my data pack abt to finish.

 

[amitrandive]

The Driver pattern rocks......
And see where it taken pause..... exactly at the zone i drawn.

Isn't the 3 drives pattern similar to the Ending diagonal pattern??


Three Drives Pattern

Ending Diagonal Pattern

 

[amitrandive]

Remember that we are in daytrading and our action should be aggressive like a predator. We are into "sitting on the edge of the chair and ready to pounce" type of trading . Swing traders and position traders can afford to be "armchair" traders ( some are even "easychair Traders" )...that luxury is not for we daytraders. But that does not mean we should take erratic trades...the success lies in achieving a fine balance.It is controlled aggression.

Smart_trade

:clapping::clapping::clapping:

 

[nitingosavi]

DLF near Support zone... May be a good bounce can come and expiry also in 2 days ...

Nifty spot supp near 8430-8420 if held. good for expiry call options ( ! )

 

[amitrandive]

How Falling Crude Oil Prices Can Help Investors Become Rich

http://profit.ndtv.com/news/commodi...-prices-can-help-investors-become-rich-708505

Brent crude oil prices have crashed 40 per cent since June, falling from around $110 per barrel to below $68 a barrel this week, which is also a five-year low. Since India imports nearly 80 per cent of its crude consumption and oil accounts for a third of the total import bill, lower prices have provided a big boost for the economy.

According to Nomura, every $10 per barrel fall in oil price can boost India's GDP growth by 10 basis points, lower consumer inflation by 20 basis points and improve current account and fiscal balance by 0.5 per cent and 0.1 per cent of GDP. Lower oil prices also support the rupee.

The collapse in crude oil prices has translated into lower petrol and diesel prices for Indian consumers. Falling oil prices also provide a big opportunity for investors as many companies are likely to make windfall gains. The following stocks get impacted because of the slump in crude oil prices:

1) Oil marketing companies - BPCL, HPCL, and IOC - will face pressure in the near term because of inventory losses, but in the long run lower oil prices will reduce subsidy concerns and benefit these stocks.

2) Auto companies (Maruti Suzuki, Hero MotoCorp, etc.) will benefit as the ownership cost of vehicles will come down because of falling oil prices. According to Nomura, a further Rs 4 per litre fall in petrol prices will lead to annual savings (assuming running of 30 km/day and mileage of 12 km/litre) of around Rs 4,000 for car owners.

3) Tyre companies (Apollo Tyres, MRF, Ceat and JK Tyres) will benefit from higher margins as 30-40 per cent of their raw material costs are linked to crude oil prices.

4) Industrials: Demand for diesel gensets could rise in near term, helping Cummins. Lower diesel prices will benefit Concor as it may lead to a cutback in railway freight rates.

5) Consumer: The biggest gainer will be Asian Paints as a huge chunk of raw materials are linked to crude derivatives, Nomura says. Godrej Consumers, HUL and Emami will benefit from lower prices of packaging materials, which are direct derivatives of crude, the brokerage added.

6) Power utilities such as Tata Power, Adani Enterprise and JSW Steel will benefit if benchmark thermal coal prices fall because of a drop in diesel prices. Reduction in price of diesel is also a positive for mining companies (Coal India). Nomura says fall in fuel oil will benefit private independent power producers where tariffs are not a pass-through (e.g. Adani Enterprises, Reliance Power).

7) Fall in LNG prices will benefit gas-powered power plant operators such as GVK Power, Lanco Infra, GMR Infra, Tata Power, Reliance Power and NTPC.

8) Airline stocks will also benefit as carriers spend nearly 40 per cent of their operating costs for aviation turbine fuel (ATF).

9) Among midcaps, JBF Industries, Bata India, Supreme Industries, V-Guard Industries, Havells India, Nilkamal Industries, Relaxo Footwear, Whirlpool of India will likely be big beneficiaries of the fall in crude prices, says domestic brokerage Nirmal Bang.

10) Finally, upstream companies like Cairn India, which is a pure crude oil play, will be badly hit because of the slump in oil prices. ONGC, Oil India and Reliance Industries will be also negatively impacted too. Nomura says falling crude prices may lead to investment curbs in the Middle East and impact companies such as L&T and Voltas, which have considerable exposure in the region.

Reposting this article for crude prices have again started going in a downtrend.

 

[extremist]

Isn't the 3 drives pattern similar to the Ending diagonal pattern??


Three Drives Pattern

Ending Diagonal Pattern

no bro....

they looks similar but not in reality.

Three driver pattern is very rarely occur. But it is very hi probability set up.
and it has very simple norms .
stick to it.

On the other hand u may call tht digonal pattern as imperfect Driver pattern.