Dear tony
Waiting for reply
Thanks
Anand
Hi Anand,
It gives me a lot of Anand to see your enthusiasm. I have replied out of turn to your query, hoping others will not mind it.
AJANTA PHARMA (1732)
The stock is in the X column on a BUY signal. It has resistance at 1800. Support is at 1600-1450. The latter support is very strong as it made a Triple Bottom at this level. This stock has been making Higher Tops and Bottoms and trading above the Bullish Support line for a very long time. A very strong stock. Such stocks are always BUY on dips.
On the candle sticks, the stock can trade between 1600 and 1815. It has resistance at 1735. Support is at 1700-1630 and 1321. CCI is 50 and positive and so is RSI at 52 although falling. The stock is consolidating here and will continue to do so for some time.
Disclosure: I own this stock
Tony
Eicher Motors (11802)
The stock is in the O column but on a Buy signal. It has support at 10900-10800. Resistance is at 12200-12300. This stock like Ajanta has been making Higher Tops and Bottoms and trading above the Bullish Support Line. A positive for the stock.
On candle sticks, it has support at 11665-11150-11345. The CCI is at 104 and moving up while the RSI is at 53 but going down. Chances are the stock will rise in the coming days.
Tony
Hi Subba!
Great effort on your part. However, I am a strict follower of Tom Dorsey and have done all my learning from his book. Personally, I have not come across anything like this. Let me know if you have done this on your own or your source is something else. So I reserve my comment and await your reply.
Tony
Hi Tony,
Thanks for the response.
I did not do this on my own rather I am referring to one book called “The complete guide to point and figure charting” by Heinrich Weber & Kermit Zieg.
My email id is manilss at yahoo dot com. Please reply to my email, I shall forward you the excerpts from the book. I am also following Dorsey Wright’s book as well. But I found the trend lines interesting in my aforementioned book so started using it.
I may be wrong on the support line that I have drawn on the chart but I am sure about the resistance line.
Thanks,
Subba
Subba, I know your question is directed to Tony but I’ll still like to add something. The whole idea of using P& F is to keep things simple. As Dorsey mentions, targets based on P & F will only give a general idea. I would rather suggest you to use charting as a support tool to a fundamentally good stock rather than going after targets. Hope you or Tony don’t mind me intruding.
Hi Ankit,
Sorry for the delay. Busy working on my blog. So excuse me please.
ASHIANA HOUSING (160)
The stock is in the X column and on a BUY signal. Resistance is at 190. Support is at 150-132 and 130. A good strong stock trading above Bullish Support Line and making Higher Tops and Bottoms.
On the candle sticks, the CCI is at 25 but moving side ways. RSI is in positive zone. Can trade between 141 and 177 as indicated by Bollinger Bands. Once CCI starts moving up, the stock should do well.
Tony
Hi Subba,
I have received your mail. Will reply shortly.
Tony
CCL PRODUCTS (123)
Yesterday the stock closed at 123. A very good stock trending upwards. On the Point and Figure charts it is in the X column on a BUY signal. Resistance is at 130. Support at 124 and 106 and 104. Support at 106 is very strong.
On the candle sticks, it has support at 117-109 and 99. RSI is at 52 and CCI at 171 trending up. Chances of making another high are bright. If it breaks 130, can expect further higher prices. Currently trading between 104 and 124 on the Bollinger Bands.
Tony
Hi Tony,
I have sent you the ebook that I was referring to your email id.
1). I have ascertained the price target based on Dorsey’s method.
2). The Bullish resistance line: As per the book that I was referring, the bullish resistance line should be drawn as given below:
**Bullish resistance lines:> **
“The bottom side of a bullish channel is defined by a bullish support line while the top of the trend is bordered by a bullish resistance line drawn from the lower right corner of the lowest exposed O in a wall of two or more exposed Os at a 45 degree angle from lower left to upper right.”
So in the chart I have drawn a 45 degree bullish resistance line from two exposed O’s which touched the price 42.
In the chart if you see, the price of the stock touched 35 and reversed and couple of other times it went past the resistance line.
**3). Bullish support line: I have drawn a 45 degree bullish support line which has touched 38. **
Both bullish support and bullish resistance lines form the bullish channel. The stock is trading withing the bullish channel.
I am drawing these two lines on the chart to determine resistance & support levels.
Please let me know your opinion.
Hi Nikhil,
Thanks for your response. No problem at all, I am not invested in Ashok Leyland stock but I am taking up different stocks and studying the patterns based on point and fiugre. Hence I wanted Tony’s help on ascertaining whether I am on the right path.
Thanks,
Subba
Hi Tony - I would like to know your comments on OCL India. On the PNF charts it has made a triple top at Rs.330 where it is facing strong resistance. Support is at 300, 285 and very strong support at 250.On the Candlestick chart, the stock is finding support at its 50DMA of Rs.309. Resistance is at the recent 52W high of Rs.336. Based on this it would be a good buy at Rs.309 levels. Please let me know any additional conclusions can be drawn from the charts.
SHILPA MEDICARE (552)
The stock has been trading in the range of 480 to 580 for the past 2 months. Currently in the O column on the Point and Figure charts but still on the BUY signal. Support is at 520-480 range. Resistance is at 580 the earlier high the stock made.
On the candle sticks, the stock has support at 550-540 and 525. It can trade between 510 and 574. Both CCI and RSI are in positive territory and inching upwards. Stock can begin to move upwards.
Tony
Ajit,
You could not have done better. What you have analysed is what I would do. You could add a few more tools like Bollinger Bands and CCI. The latter is the best in my armory as it tells me where exactly a stock gets oversold and sell when it gets overbought. Or else you are on the way to success. Keep it up. If you need any help do contact me on my mail too. I am very happy when someone learns to fish.
Tony
250.On
Hi Tony,
Thank you for your wonderful input in this thread. Whenever you get a chance, could you give your view on Gruh?
Thanks,
Nikhil
Nikhil,
There are many tools available for analysis. You have rightly said, keeping things simple is very important to me. I have greatly benefitted from it. Subba is learning the hard way which is very admirable. He will learn and eventually come to his own conclusions. Being self reliant is the best thing to do in investing.
Tony
Dear Tony,
Visiting your thread for the first time today. Let me admit, I have zero idea about P&F charting and techniques but found your consistent predictions quite impressive through some random backtesting. Very very impressive and a great effort.
I am planning to invest in Indian large PSU banks as a basket portfolio of investment for long term. My preferred picks are BOB, PNB, Canara, SBI, Andhra, Oriental and Allahabad in different proportions …
Now since these stocks are widely traded, in the F&O segment, sometime manipulated by proprietary traders and moves in a range … My question is, how these banks are looking in the P&F chart and based on these different indicators?
Possibly I can adjust my timing though my investment would be for a 2 -3 years frame.
Disregard this if you don’t track these stocks.
Thanks a lot…
Nikhil,
Gruh Finance is currently trading at 189. On the Point and Figure chart, the stock is on a SELL signal after making a double bottom at 200. The next support is at 185 and 165. Resistance is at 200.215 and 225. A fundamentally good strong stock to own and hence always a BUY on dips.
The CCI is -112 and RSI is at 29. Both are in oversold zone. Very strong support a 175 being the 200 day EMA. So the downside for the this stock is not much from here. Resistance is at 195 -200 zone.
Tony
[ Comment too short ]
Dear Aveek,
I am pleased to have you as my reader and welcome you to this blog which is amazing. Surely will analyse each and every stock for you.
Bank Of Baroda (868)
This stock after breaking the Bearish Resistance Line (red line) at 580 where it had made a triple top earlier in September 2013, shot up to made a new high of 1000 in May 2014.Yesterday the stock closed at 868. On the Point and Figure charts, the stock has support at 780 and 700. Resistance is at 960 and 1000. Currently in the O column but on a BUY signal.
On the candle sticks both the CCI which is at -77 and RSI at 24 are in the oversold zone. The stock has resistance at 890 the 50 day EMA. Support is at 795 the 200 day EMA. Watch the latter support carefully. If the stock falls below this level one can expect even lower levels.
Tony
Dear Tony,
Visiting your thread for the first time today. Let me admit, I have zero idea about P&F charting and techniques but found your consistent predictions quite impressive through some random backtesting. Very very impressive and a great effort.
I am planning to invest in Indian large PSU banks as a basket portfolio of investment for long term. My preferred picks are BOB, PNB, Canara, SBI, Andhra, Oriental and Allahabad in different proportions …
Now since these stocks are widely traded, in the F&O segment, sometime manipulated by proprietary traders and moves in a range … My question is, how these banks are looking in the P&F chart and based on these different indicators?
Possibly I can adjust my timing though my investment would be for a 2 -3 years frame.
Disregard this if you don’t track these stocks.
Thanks a lot…
Dear Tony
What is your take on technicals of Dhanuka Agritech.
Thanks in advance.
Irshad