My charts (and yours too........)

[babukraman]

Biocon
On the 3rd Dec, retraced till 50% level on an intraday basis. Then again, on the 15th (today) retested this level (of around 416) along with a formation of dark cloud cover.

 

[babukraman]

KLG SYSTEL LTD
16/12/2010
Babu Kothandaraman

The stock is in a clear down trend; below its 200 and 100 EMAs. Currently 100EMA has proved to a Resistance thrice (mid July, early Aug and mid Nov). In mid Nov, the stock had broken down trading range (between 102 and 87) of mid Aug to mid Nov.

Now let’s take a closer look at the current status below for the bulls:

The stock has made a bullish engulfing pattern with 1/2xVol>VolMA5. This pattern has also broken out the downtrend line. Most importantly the short term fall since mid Nov, is accompanied by the positive divergences of MACD histogram, RSI and STOC.

Now talking from the “trade” perspective, I would term this as an “extreme buy”. Why? With the pronounced long term down trend and a much sharper short term downtrend in place, it’s always advisable to go with trend. But to go “long” on this is extremely risky.
For “Long” enty, the targets are 76, 87 & 92 and SL would be 61.

 

[babukraman]

Previous view

Hi all,
Is this an ascendng triangle formation? or ..............

more comments on the chart itself

Cheers!
Babu Kothandaraman

Now
BHUSHAN STEEL LIMITED
BHUSANSTL-20101216
Babu Kothandaraman

With the previous view, I’d expected a 38% retracement to 433 levels. Well! It’s all there for to see!

Now, I’m batting for the bulls. With the price making Lower Lows since that correction, the MACD histogram, RSI and STOC are forming a positive divergence.

 

[babukraman]

Reliance
A Bollinger band observation

 

[biggles]

hi babu,

awaiting ur weekly nifty analysis.

thanks and tc

 

[babukraman]

Biggles,
I've already read a couple of Nifty reports by last night itself. However, here we go!

NIFTY
2010-12-16
Babu Kothandaraman

There is a double bottom formed at the 5752 levels with positive divergences on the MACD histogram, RSI and STOC. Also, it has stopped making a new Lower Low.

Are these just good enough for an up move?
Let’s get closer for a macro view.

48EMA is around 5959 and 100EMA is around 5833. The price is trading between this range for the past three days. And the latest candle on the 16th looks like a hammer. I say, “look alike” because it’s not strictly a “top one third body and bottom two-thirds of a tail” definition of a hammer. The body along with the top wick is more than one third of the range; hence, can be termed as a bullish biased candle. Nevertheless, with the price hitting the Resistance of the downtrend line and 48EMA (around 5955 levels) together, a breakout might see the index reaching 6070 which is the prior swing high.

In EW parlance, it looks like a “(b)” corrective wave trying to form a flat. If so, “c” wave of this “(b)” flat should at least reach, if not exceed the levels of “a” wave of “(b)” which also coincides with the previous swing high of 6070.

But, remember that the TA is more of an art than a science. So, even if the current candle doesn’t strictly confirm to the definitions of a hammer, it has formed at the Resistance zone of the 48EMA and the downtrend line.

So, make your decisions depending on the price actions of the coming days. Happy trading!

 

[dhootankur]

RCOM...showing some divergences in MACD, RSI & STOC...I am not saying this can be good buying oppurtonity but I am sure many of peoples must have got trapped in RCOM at higher levels. If we calculate Risk : Reward there is more risky but if one can take slight risk then let this stock cross 132 which was support for this stock earlier twice and from where it has taken good support and bounce, now is acting Resistance(This is quite good example for people searching for Support turned Resistance's example). 120 should be the SL as of new low.

Will appreciate ur view...

 

[columbus]

Rcom presents a good buying opportunity ,but let see the 2G-spectrum
effect ,till accumulate in small lots.

 

[kaly422000]

http://img828.imageshack.us/i/rcom2.png/ THESE PATTERNS LIKE AB=CD as green line (harmonic pattern) sometimes speak. any one have view about this pattern pls coment rcom daily but we sud watch atleast for higher low

 

[biggles]

Biggles,
I've already read a couple of Nifty reports by last night itself. However, here we go!

NIFTY
2010-12-16
Babu Kothandaraman

There is a double bottom formed at the 5752 levels with positive divergences on the MACD histogram, RSI and STOC. Also, it has stopped making a new Lower Low.

Are these just good enough for an up move?
Lets get closer for a macro view.

48EMA is around 5959 and 100EMA is around 5833. The price is trading between this range for the past three days. And the latest candle on the 16th looks like a hammer. I say, look alike because its not strictly a top one third body and bottom two-thirds of a tail definition of a hammer. The body along with the top wick is more than one third of the range; hence, can be termed as a bullish biased candle. Nevertheless, with the price hitting the Resistance of the downtrend line and 48EMA (around 5955 levels) together, a breakout might see the index reaching 6070 which is the prior swing high.

In EW parlance, it looks like a (b) corrective wave trying to form a flat. If so, c wave of this (b) flat should at least reach, if not exceed the levels of a wave of (b) which also coincides with the previous swing high of 6070.

But, remember that the TA is more of an art than a science. So, even if the current candle doesnt strictly confirm to the definitions of a hammer, it has formed at the Resistance zone of the 48EMA and the downtrend line.

So, make your decisions depending on the price actions of the coming days. Happy trading!

Hi Babu,
I look forward to ur views on the nifty. A great analysis as always.:clapping:
Thanks

tc