Hi Saint,
Couild u please comment on infotech enterprices (infotecent) CMp 515.i entered this scrip when it broke the 450 region which for my inexperienced was a higher pivot.And right now it looks like it has formed a higher pivot at 495-500 levels.I wanna add more to this stock because i bought only 50% and could not add more because i am not comfortable when i have a look the weekly graph something tells me it has to break 550 for a longer term buy..Please correct me if i am wrong.
Also would like u r views on praj industries.I bought it at the last bull run and sold 30% of my holdings at 202 and then 30% more at 157.However was not able to cover because the move from 130 to 160 were all in circuits Now it has reached 180 and it looks like it is consolidating here.What should i do now?? Weekly it looks nice..looking abck it looks like i should have entered at 160 however was very nervous that time and the graphs were looking diffrent was looking for a break of 180 now that 180 i am still confused..confused because of the fall on friday.
Please comment on this..! Thanks a lot.
Trading using pivots looked so simple on "teach a man to fish" however when it comes to fishing real time in the mkts..Whew! it is so very diffrent. Please do not stop "teach a man to fish" it is my bible...!!
Hi Trader 123,
Let's come to the last statement first........trading is very simple,sometimes the strife is in keeping things simple.But as you stated,trading can ,by no means,be termed easy.But first steps first, a step at a time,my friend.........walking was an achievement when you were a child.Today,it's just another activity that you do without thinking.
Okay,on to INFOTECH.........INFOTECH has broken through its long term Uptrendlines that stretch back to 2004.As we had discussed before,so long as the trends hold and the stock is in an Uptrend,we buy declines.Once it breaks through the Uptrendlines,and breaks former pivots,the Uptrend is in danger,probably over.Now we no more think of buying declines..........we are now in Sell the Rally mode.
Unless INFOTECH does something else that makes us feel that it is resuming its uptrend,for now it is STAND ASIDE.
That higher pivot low made on the daily is indeed a higher pivot as stated by you,and another higher pivot low around the 485 area.......but longer term picture is a Rally in a Downtrend.So when we get a daily making higher pivot highs and lows,and a weekly looking like a dntrend,you always respect the weekly.You could definitely play the long side but on a short term basis.On an intermediate basis,stand aside.
For now,as you are in already,HOLD.DO NOT ADD.......Keep your stop loss below the low of the last week ie 472.
For a longer term buy,INFOTECH needs to fall and form a higher pivot low on the weekly,or blast through 612,and then pullback for us to go ecstatic and euphoric.
PRAJ for later........INFOTECH charts attached.
Happy Trading!
Saint