New Intermed Uptrend!!

[Saint]

Hi Saint

Your and every senior in this forum are the reason many people who could not have survived this calamity of sorts as we call it.. Have endured and survived it.. Appreciate your wisdom and knowledge.. as Udyan says Three Wise Men this morning.. we are lucky to have more then three wise men in here..

thanks to all seniors.. AMIT, Saint, Ravi T and everybody..

thanks

Nishant

Hi Nishant,

Kind words........most appreciated.To know that someone has made money out of some calls that were shared is satisfying.To know that people who made some money went into cash 2weeks ago and therefore consolidated their profits is indeed thrilling....Great stuff,Nishant,great stuff indeed!!

All the best!
Happy Trading!!
Saint

 

[Saint]

Saint

Re.: Kitex Garments

I received the Annual Report of Kitex Garments yesterday and it makes some interesting reading. The highlights are:

Turnover for 31 03 05 80 Cr.
for 31 03 06 Projection 125 Cr.

GP Margin 20% for 31 03 05

No. of pieces of Garment produced for 31 03 05 2 Cr. (yes 2 Cr.) at an average of around 60000 pcs per day.

Production capacity being doubled and enhanced capacity to be operational from Decmber 2005. Based on this, the projected turnover for 31 03 07 without considering any price increase or efficiency increase would be Rs.160.00 cr.

Equity is 4.75 Cr.

EPS for 31 03 05 5.52

Icing on the cake: Share of Face value 10/- is being split into Shares of Re.1/-.

This is must hold and add share.

Kamalesh

Thx for that fundamental take,Kamalesh!Always great when fundamentals and technicals meet.....those are the stocks that are sweetest to hold,but still keep your stop losses,and get out when hit.Great stuff,Kamalesh,as always!!

Saint

 

[kkrish68]

Saint

Re.: Kitex Garments

I received the Annual Report of Kitex Garments yesterday and it makes some interesting reading. The highlights are:

Turnover for 31 03 05 80 Cr.
for 31 03 06 Projection 125 Cr.

GP Margin 20% for 31 03 05

No. of pieces of Garment produced for 31 03 05 2 Cr. (yes 2 Cr.) at an average of around 60000 pcs per day.

Production capacity being doubled and enhanced capacity to be operational from Decmber 2005. Based on this, the projected turnover for 31 03 07 without considering any price increase or efficiency increase would be Rs.160.00 cr.

Equity is 4.75 Cr.

EPS for 31 03 05 5.52

Icing on the cake: Share of Face value 10/- is being split into Shares of Re.1/-.

This is must hold and add share.

Kamalesh

Kamalesh

This does not seem to be listed in either NSE or BSE. On a separate note, should the Debt / Equity of 2.11 be of concern?

regards
Krish

 

[Saint]

Also,what type of charts do you use?Bar or Candles?

Please answer anytime when u find time.

Thx in adv,

Avinash

Hi Avinash,

Candlesticks.........why?Because at one glance at the bar,I know what's happened at the markets that day.Other than that,few of the bars give very ominous signs of possible fall or rise.If you are using Candles,great to learn up a few of these signs......they are a great add to your ****nal.

If possible, get your hands on Jap Candlesticks Charting Techniques by Nison,great stuff!

All the best!
Saint

 

[Saint]

Hi Saint,

I always hear you talking about triangles -symmetrical, ascnding, dessending triangles.......Are there more patterns we should know about to see in achart to become better traders?

Hi Avinash,

Just going to state the very basic stuff that is important in our goal of profit making.

Chart Patterns

Two types:

a)Reversal Patterns:These patterns reverse trends.Eg.Double Top,Double Bottom,Head and Shoulders,Cup n Handle.

b)Continuation patterns:These indicate a possble contination in trends. Eg.Triangles,Bull flag,Bear flag,Pennant

REVERSAL PATTERNS
1.Double Top :This pattern can happen on any time frame.........this halts the uptrend and starts a downtrend in that stock or index.
-Also called as M Top,coz it resembles an "M".
-If double tops are bearish,triple tops are even more so.
-Volume is higher on the first peak,and lesser inthe 2nd peak,and starts picking up on breakdown from the 2nd peak.
-Now take the trough between the two peaks.......breaking that level is confirmation of a change in trend to the downside.
-How does knowing this help us in our trading?
We have a great uptrend on good volume and a pullback on lesser volumes.....so far so good.Now the 2nd peak formation starts to form with much lesser volume as compared to the 1st peak,and then a breakdown on high volume........this gives us an indication to exit our longs if we are short term players as trendlines get broken to the downside.But without confirmation,we are officially in nothing more than a sideways trend with possible fall downwards.Now the trough gets broken and usually the stock retraces back........We are now officially in a downtrend.The time to short has arrived.Short a half at the retracement,and short the other half below the low of the bar that closed below the trough line.Target :The distance between the peak of the "M" to the trough of the "M"......add that to the low of the bar that broke the trough line.That's our target point.

2.Double Bottom:Same as above,it halts a downtrend,and starts an uptrend in that stock or index.
-also called as "W"bottom.
Trading strategy and measuring techniques are just the opposite to the above.

Shall continue the Reversal Patterns tomorrow........hope you don't mind the answer coming in small doses

All the best!
Saint

 

[avinash]

Hi Avinash,

Just going to state the very basic stuff that is important in our goal of profit making.

Chart Patterns

Two types:

a)Reversal Patterns:These patterns reverse trends.Eg.Double Top,Double Bottom,Head and Shoulders,Cup n Handle.

b)Continuation patterns:These indicate a possble contination in trends. Eg.Triangles,Bull flag,Bear flag,Pennant

REVERSAL PATTERNS
1.Double Top :This pattern can happen on any time frame.........this halts the uptrend and starts a downtrend in that stock or index.
-Also called as M Top,coz it resembles an "M".
-If double tops are bearish,triple tops are even more so.
-Volume is higher on the first peak,and lesser inthe 2nd peak,and starts picking up on breakdown from the 2nd peak.
-Now take the trough between the two peaks.......breaking that level is confirmation of a change in trend to the downside.
-How does knowing this help us in our trading?
We have a great uptrend on good volume and a pullback on lesser volumes.....so far so good.Now the 2nd peak formation starts to form with much lesser volume as compared to the 1st peak,and then a breakdown on high volume........this gives us an indication to exit our longs if we are short term players as trendlines get broken to the downside.But without confirmation,we are officially in nothing more than a sideways trend with possible fall downwards.Now the trough gets broken and usually the stock retraces back........We are now officially in a downtrend.The time to short has arrived.Short a half at the retracement,and short the other half below the low of the bar that closed below the trough line.Target :The distance between the peak of the "M" to the trough of the "M"......add that to the low of the bar that broke the trough line.That's our target point.

2Double Bottom:Same as above,it halts a downtrend,and starts an uptrend in that stock or index.
-also called as "W"bottom.
Trading strategy and measuring techniques are just the opposite to the above.

Shall continue the Reversal Patterns tomorrow........hope you don't mind the answer coming in small doses

All the best!
Saint

Hi Saint,

Thanks a lot .......please take your time,but your teaching is of great help!!So don't stop.....looking forward to a daily dose of tech analysis.

Thanks a lot!!

Avinash

 

[kkrish68]

Hi Saint,

Thanks a lot .......please take your time,but your teaching is of great help!!So don't stop.....looking forward to a daily dose of tech analysis.

Thanks a lot!!

Avinash

Hi Saint,

Appreciate your inputs. Another interesting analysis will be based on the Cup chart. I feel that Hindalco is on the verge of a major breakout purely on the basis of the cup formation. I could be halucinating and would appreciate your inputs.

Best regards
Kishore

 

[karthikmarar]

As always, Saint..Excellant...Looking forward to the next post on Reversal Patterns..Thanks

regards

karthik

 

[phoenix]

Thanks Saint........looking forward to it!

Phoenix

 

[ravi t]

Thanks Saint........looking forward to it!

Phoenix

phew!!!!!! i have now lost words in appreciating your work buddy!!!
regards
RAVI T