Learning to catch High Probability Breakouts

[amitrandive]

@ Amit, What do you think of this range breakout in Rural Electrification?
How far high do you think it can go?

REC was rangebound for around 5 years from 2010.I would be very cautious of this breakout.Needs to sustain the level of 380, to break off from that level,to test it again to be able to take off.

Monthly Chart of REC.

Weekly Chart of REC.

 

[Riskyman]

Thanks Amit. I really wasnt looking to buy REC. I was thinking it could be a good short if it went up all the way to 380.
Just looked at the options data. Either the stock will fall below 350 or call writers who sold 350 CE will end up loosing money!.

Also think Selling 380 calls will be a good idea

 

[amitrandive]

Today also ITC looking under pressure. From daily charts can we say that it is trading near supports ?

Amitji what are your views?

Sunnyraj

I am also learning from you.

After seeing your post and chart I shorted ITC @ 348 and covered @ EOD @ 343.It made a low of 342 today.

:clapping:

 

[amitrandive]

The year 2015 did not start on a good note for the two Auto Giants of Nifty ,Bajaj-Auto and HeroMotors.

They are completely underperforming the CNX Auto Index which has gainers like Maruti,MRF,Bosch,

Daily Chart of BajajAuto

Daily Chart of HeroMotors

Daily Chart of CNXAuto

CNXAuto Check the last column of last 30 days change.

 

[Sunnyraj]

Sunnyraj

I am also learning from you.

After seeing your post and chart I shorted ITC @ 348 and covered @ EOD @ 343.It made a low of 342 today.

:clapping:

Nice trade amitji

 

[amitrandive]

..contd

9)Opening reversals

The components of an opening reversal pattern are:

Usually fast move to a magnet (support or resistance)
Reversal that leads to a swing for the next few hours or the entire day

Most strong bull trend bars on the daily chart have at least a small tail on the bottom, which is usually caused by an opening reversal (a selloff on the open that reverses up, and it is therefore a reversal pattern). Similarly, most bear trend bars on the daily chart usually have a tail on top caused by an opening reversal down.

 

[amitrandive]

Reliance , Breakout or Shortcovering ?

Reliance closed 4.15% from previous close today.Reliance has been a range bound stock for years.Currently in a short term downtrend.
Is this a breakout or short covering?
Have to wait for a couple of days to find out.

Daily Chart of Reliance

 

[Rish]

Reliance , Breakout or Shortcovering ?

Reliance closed 4.15% from previous close today.Reliance has been a range bound stock for years.Currently in a short term downtrend.
Is this a breakout or short covering?
Have to wait for a couple of days to find out.

Daily Chart of Reliance

This time nifty higher levels may be because of Reliance also...who knows...let us see...

Also...Asian paints looking good...made bottom...and trying for good move upside..

 

[amitrandive]

Deleted post

 

[amitrandive]

This time nifty higher levels may be because of Reliance also...who knows...let us see...

Also...Asian paints looking good...made bottom...and trying for good move upside..

Daily Chart of Asian Paints