On the P&F chart stock is in O column but still in the buy zone. Support is at 640, 560 & 530.
On the candlesticks chart it is just above the 200DMA of Rs.656 from which it bounced back yesterday after 2 consecutive days of steep falls. RSI looks oversold at 22.08 and CCI is at -324 showing that it is in a downtrend. I am planning to buy some. Do you suggest I should wait to see if the 200DMA support at Rs.656 and P&F and support at 640 sustains before entering?
Once again excellent analysis. However, the stock will have resistance at 590 and not 580. There is an O next to double top at 580. If there was no O then your analysis is correct.
Further, one should watch if the CCI is trending up or down. If it is trending down, then the stock will continue to fall. Above 70 on the RSI is overbought and above +100 on the CCI is also overbought zone.
Continue the good work you are doing. I am sure you will master it shortly.
I am pleased that you are trying out. No worries. Just a few corrections.
On the Point and Figure chart it made a Double Bottom at 720 and broke down. It is presently in the O column and on a SELL signal. Support is at 620-550-530 -520. Resistance is at 720-820.
Your analysis on candle stick is correct. However, you should see if CCI has fallen below -100 and moving upwards, which it is currently doing. You rightly said the stock has taken support at the 200 day EMA and bounced back. Since the last one year the stock has briefly fallen below the 200 day EMA just once but pulled back fast. It is safe to assume that at 656 the stock has strong support. The CCI has also started recovering and moving upwards from -324 to -227.
A good time to enter the stock but keeping in mind the markets are choppy and range bound till election results.
I wish more will join the likes of Vijay and Ajit and present their analysis here. This will go a long way in my endeavor to prove that Technical Analysis can be taught successfully for free.
Thanks a lot for your encouraging words. Its all because of the generosity of seniors like you that we are learning to understand a few basic things. I am happy that I have started to atleast understand the point and figure charting a little.
I will post my analysis on a few other stocks looking for your expert comments.
The major challenge though for newbies like us is in interpreting and relating the Point and Figure chart with other indicators so that we can try and get in a stock at the best prices possible ( though not exactly predicting the bottom).
Tony, please guide on which other indicator should I also start look into apart for P & F and CCI, to understand the movement of the stock price.
I am posting my analysis of Larsen and Toubro on the P & F Chart for your feedback.
LARSEN AND TOUBRO : 1299
On the Point and Figure charts, the stock is in the O column but still on a BUY signal.
It has a strong support at 1260, where it had earlier made a double bottom. If it breaks 1260 then the next support is at 1140. If it breaks 1100 the stock will become weak as it will go below the bearish support line. The stock has resistance at Rs 1380, where it will make a double top .
On the Candle sticks, the RSI is at 50 and the CCI is at -30 and sloping down showing the stock is falling.
I had earlier put up a check list which one should go through before buying a stock. As you have asked a query again, I am putting it up for everyone’s benefit.
The stock after making a Triple Top gave a huge break out to touch an all time high of 1360. Currently, in the O column and on a PULL BACK. It has support at 900 where it made a Triple Top and 840 and 820.
On the candle sticks, the stock has support at 1208 where it is currently placed, and then at 1012, 925 and 733. The RSI is at 76 and falling from the overbought bought zone and CCI is at 110 also falling from over bought zone. Watch for 900 which is a very strong support for the stock.
Your analysis is spot on. I don’t think you need my help now. You will have noticed how the stock took support at 1260 and moved up. The chart looks good as the RSI is 63 and CCI 62 showing positive momentum. A very good sign. Can expect it to go higher in the next few days.
The stock made a Triple Top at 64 and moved to 66. Currently in the X column and on a BUY signal. It has resistance at 72 and 86. It has support at 63-58 and 57. It has broken the Bearish Resistance Line which is a good sign.
On the candle sticks, it has support at 62.50-61.25-59.65. It has strong support at 60 which is the 200 day EMA. Any fall below this will see panic selling. RSI is at 69 and CCI at 15 inching upwards which suggests that the stock can move upwards. However, the markets are going to be very volatile and hence directions can change quickly.
In April the stock made a t Double Top at 21.50 and moved up to 24.50 from where it reversed. Currently it is on a SELL signal which it gave at 20.50. Support is at 18-15.50. Below this the stock will become extremely weak as it will trade below the Bullish Support Line.
On the candle sticks, the stock has support at 19.15-18.75 and 17. Below 17 it will once again turn very weak. The RSI is at 41 and CCI at -137. Both are showing positive signs and hence the stock can move up once again to 20.50 where it will meet resistance.
My frank advise to readers here is to avoid getting into penny stocks like these when there are such gems available in the market. It is better to pay a higher price for quality stocks where one gets a chance to sell and move out.
Although the markets are touching all time highs, you will note that Penny stocks will keep struggling and never give a good exit to an investor who gets stuck for a long time.
The stock has broken below the 5-25 and 50 day EMA’s. The strongest support exists at its 200 day EMA at 240. The RSI is at 24 and CCI at -171 both in the oversold area.
On the Point and Figure charts, the stock made at Triple Top at 320 and touched 330 a new high. There is a pull back currently and the stock is in the O column although on a BUY signal. The next support is at 275 which is strong where it will make a Triple Bottom and then at 260. Resistance is at 330 and then it can go on to make a new high.
Looking at the oversold positions in the stock, I personally feel the stock will take support at 275 unless there is panic in the markets.
The stock made a Triple bottom at 550 and touched 546. It is currently on a SELL signal. It has support at 510 the earlier Triple Top and then at 480. Strong resistance is at 550 the earlier Triple Bottom and then 560 and 620.
On the candle sticks, the chart is close to taking support at the 50 day EMA of 523. The next strong support lies at 354 the 200 day EMA. The RSI is at 45 and CCI at -176. It is oversold on the CCI but no clear sign as at of the CCI moving towards -100. Watch it carefully as this may give a good BUY signal.
