kaveri seeds daily charts seems to indicate a flag pattern.
flag pattern is a continuation pattern --(one can consider it sideways correction post a sharp upmove – essentially a time wise correction without too much price damage) and breakout from the flag pattern will indicate commencement of another sharp upmove. targets are achieved by adding the distance of flagpole to the breakout point.
in case of kaveri, if indeed it breaks out in next few trading sessions, then it would be around levels of 1050 since flag is drooping down and breakout point would come lower in next few days. target would be around 1350. (flagpole height is 300 and added to 1050 gives target of 1350)
attached charts with various markings.
kaveri closes at 1320, quite close to the flag pattern breakout target of 1350.
on closer look this one flag pattern also has a droopy look like the one posted in ajanta pharma. lets hope the same results come out in ajanta (and unichem as well.)
Due to negative news the stock crashed to 1140 on Friday,21, 2012. I bought it around 1190. See for yourselves what the stock did today. Here is the chart.
The stock gave a false sell signal at 1180 and touched 1160. Today it did a U turn and touched 1300 and closed at 1266. Chart reading is very simple under Point and Figure.
X represents buyers and hence demand
O represents sellers and hence supply. When demand exceeds supply the price rises and vice versa.
When two consecutive X’s are made it is called a double top and where 3 it is called triple top.
When two consecutive O’s are made it is called a double bottom and where 3 it is called a triple bottom.
When a O exceeds a double bottom it is called a sell signal, and when an X exceeds a double top it gives a buy signal. Always wait for a pull back to enter a stock at the right time and you will make a lot of money. In one day a return of nearly 10 % is phenomenal.
