Point & Figure Charting

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421

Hi Tony,

What would be an appropriate level to get into PI Ind as per technical analysis?

Regards,

Ramesh

422

Niranjan,

BALRAMPUR CHINI:(42.70)

The stock is currently in the X column and has given a BUY Signal. Next resistance is at 46-53-54. Support exists at 40-38. If it falls below 38 the stock will be trading below its Bullish Support Line and turn weak. Next support is at 35.

http://chartink.com/pointfigure/balramchin.html Link: http://chartink.com/pointfigure/balramchin.html

On the candle stick the RSI is at 73 and hence in over bought territory. CCI too is positive at 111 but sloping downwards. Profit taking may come in. The next resistance is at 44 its 150 day EMA and 44.85 its 200 day EMA. If it crosses these two levels then it can touch 54.

http://chartink.com/stocks/balramchin.html Link: http://chartink.com/stocks/balramchin.html

SHREE RENUKA SUGAR:(20)

http://chartink.com/stocks/renuka.html Link: http://chartink.com/stocks/renuka.html

The stock price is close to the 150 day EMA of 20.47. If it crosses this then next resistance is at 200 day EMA at 22.87. After that it can touch 25.50. RSI is in over bought territory and CCI is positive at 163. Watch above levels for break outs.

http://chartink.com/pointfigure/RENUKA.html Link: http://chartink.com/pointfigure/RENUKA.html

On PnF the stock has given a BUY signal. Next resistance is at 20.50-21.50, 23.50 and 25.50. Support comes in at 18, 16. Fall below this level will make the stock weak as it will trade below its Bullish Support Line. Next support at 14.50.

Tony

423

Ramesh Kumar,

P I INDUSTRIES:

http://chartink.com/pointfigure/piind.html

The stock broke a strong resistance at 140 and now it has made a new high. Its on a BUY Signal. Support at 145 and 140. The latter is very strong support. After that it can come again to test 138-136 and 130 levels.

On the candle stick charts, one can see that the stock is trading above all its EMA’s and hence very strong. RSI is presently in over bought territory at 82.59 and CCI too is 121.20 but falling towards 100.There are chances of a pull back. Good entry level will be at 140.

http://chartink.com/stocks/piind.html

Tony

424

Rajarshi,

ASTRAL POLY (Rs.230)

In reply to your query,I had informed you that it has to trade above 215. That is exactly what Astral has done. It is now above the resistance zone of the 50 day EMA of 215, and can surely move to 250 levels. The CCI which I had indicated at -17 is now 196. A typical copy book story on the charts by this stock. Good observation by you. Do keep sharing your views with all over here.

Tony

425

Hi Tony,

Thanks for your reply to my query on Kaveri and bringing up the news piece.

I will look more into it.

Today, the stock almost touched 200DMA and bounced back a bit. RSI also moved up a bit. On a pure technical POV, I was of the opinion that being so heavily oversold, it should move up. Lets see whether it breaks

the 1400 mark.

For now, I have one more question about pnf chart of Kaveri. The box hieght was 20 and it is 50 above 1400. Is it OK for a PnF chart to have different heights?

426

Rohit,

The box sizes for stocks depends on the price range. There are various sizes for various price ranges. Earlier the box size for Kaveri was 20 when the price range was lower and now it has been increased to 50. You will know that for a column change from X to O, there is a 3 box size price movement required. For example if the box size is 20, then if the share is currently at 500 and in the O column, then for the shift from column O to X, the share price has to increase to 560 or more. When this happens there will be a column change. A Rs.60 price change for higher priced shares can happen within a day.

If a small box size is kept forshares who’s prices are high,then the chart will show a lot of movement everyday from one column to the other. This will not be able to capture the BUY and SELL signals on the charts. In order to reflect the true picture and slow down the movement, the box size has to be increased or decreased from time to time.

Hope this clarifies your query.

Tony

427

Hello Tony,

Could you please take a look at JB Chemicals?

regards

428

Thanks for the informatiom Tony. It makes sense now but shouldn’t the chart be readjusted (like bonus, splits) so as to make past box size the same as present. Do the inferences drawn from chart in this transition from 20 to 50 unit size still hold good?

forshares

429

Thanks Tony. I have observed one thing that rarely have fundamentally good stocks fallendown heavily after they haveconsolidated and formed bases.

I have always looked at the technical moving averages data which are readily available.Finally real credit goes to you who hasbeenshowing the wayto all of us in technical analysis.

Regards,

Rajarshi

Rajarshi,

ASTRAL POLY (Rs.230)

Tony,

Both Astral and Kaveri have been forming bases at 208-215 and 1460-1480 levels. Both are excellent fundamentally and they have not apprecaited along with the market. A breakout is bound to happen sooner than later.

Your thoughts would be appreciated.

Regards,

Rajarshi

430

Thanks Tony :slight_smile:

Niranjan,

BALRAMPUR CHINI:)(42.70)

http://chartink.com/pointfigure/balramchin.html Link: http://chartink.com/pointfigure/balramchin.html

http://chartink.com/stocks/balramchin.html Link: http://chartink.com/stocks/balramchin.html

SHREE RENUKA SUGAR:)(20)

http://chartink.com/stocks/renuka.html Link: http://chartink.com/stocks/renuka.html

http://chartink.com/pointfigure/RENUKA.html Link: http://chartink.com/pointfigure/RENUKA.html

Hi Tony,

Could you please share your views on Balrampur Chini and Renuka sugar please?

Regards,

Niranjan

431

Hello Ramkumar,

J B CHEMICALS:

On the candle stick charts, the stock is above all the EMA’s, hence a strong stock. It still has scope to move up as the RSI is close to 61. On the CCI it is positive though.

http://chartink.com/stocks/jbchepharm.html

The stock is currently in the X column, indicating more Buyers and on a BUY signal which it gave at 88. The next resistance is at 90-92-96. On the reverse it has support at 78-74-72. Some more steam left in the stock.

http://chartink.com/pointfigure/JBCHEPHARM.html

Tony

432

Rajarshi,

I fully agree with you. Fundamentals backed by Technical makes the best concoction. It has been my personal experience. I used to select the correct stocks but in the absence of Technical never could enter at good prices. That has got corrected since i started learning Point and Figure Charting. To this i added my own, like RSI, CCI and it has been a perfect combo.

Surely pleased to know that my analysis has helped you and other readers. Please do give feed back so that I can always improve. It is in sharing that I learn more. I want to share all what I have for the common benefit. Knowledge has to be shared for free. That is my personal belief. Please do not hesitate to ask for more.

Tony

Thanks Tony. I have observed one thing that rarely have fundamentally good stocks fallendown heavily after they haveconsolidated and formed bases.

I have always looked at the technical moving averages data which are readily available.Finally real credit goes to you who hasbeenshowing the wayto all of us in technical analysis.

Regards,

Rajarshi

Rajarshi,

ASTRAL POLY (Rs.230)

433

Dear Tony

I had been holding Unichem for a long time and finally dumped it a couple of months back.Do u think it is worth buying now and if so at what levels? Also I was hoping to buy Accelya and Atul Auto when it was falling. But it just did not fall to the extent I had anticipated.Do u think it is too late now?

Regards

Ashwin

434

Hello Tony

What do you think of Paper Products and Essel Propack? Does it look good in the charts?

Raj

435

Hello Ashwin,

UNICHEM:

Unichem has been testing everyone’s patience. Currently the stock is in X column but on a SELL signal. It has very strong resistance at 180. Thereafter at 190,210-215.

http://chartink.com/pointfigure/UNICHEMLAB.html Link: http://chartink.com/pointfigure/UNICHEMLAB.html

It has support at 138. A good stock to buy at lower levels.

http://chartink.com/stocks/unichemlab.html Link: http://chartink.com/stocks/unichemlab.html

On the candle stick charts, the stock is very close to the 200 day EMA at 171. If it breaks this then the stock should gather good momentum to cross 180. Then we can look forward to targets of 215. However, RSI is in overbought territory and CCI sloping downwards to 100. Let us hope this time it breaks upwards.

ATUL AUTO:

http://chartink.com/pointfigure/531795.html Link: http://chartink.com/pointfigure/531795.html

This stock is in the X column on a SELL signal. It has strong resistance at 195. Then next level is at 200-225. A fundamentally good stock to buy at lower levels. Support exists at 145.

http://chartink.com/stocks/531795.html Link: http://chartink.com/stocks/531795.html

Currently the stock is trading above all the EMA’s. RSI too is in overbought territory at 74.75 and so is CCI in positive zone at 247. All in all a good chart. Let us see if it can break 195. If it does,then one can look at 225 levels.

ACCELYA:

http://chartink.com/stocks/accelya.html Link: http://chartink.com/stocks/accelya.html

The stock is a strong stock trading above all the EMA’s. Such stocks should always be bought on dips. RSI is at 51.77 and CCI is at 92.88. Looks like 660 the previous high can be achieved.

http://chartink.com/pointfigure/ACCELYA.html Link: http://chartink.com/pointfigure/ACCELYA.html

Presently in the X column on a SELL signal. Resistance is at 660 where it will make a new high. Support lies at 560, 530-510.

Wait for markets to correct and BUY the stocks at lower levels. This time you missed the train. Wait for the next train to arrive.

Tony.

436

Hello Raj,

PAPER PRODUCTS

http://chartink.com/pointfigure/PAPERPROD.html Link: http://chartink.com/pointfigure/PAPERPROD.html

The stock is in O column but on a BUY signal. Support comes in at 57 and Resistance is at 68-74-82 on the upside.

http://chartink.com/stocks/paperprod.html Link: http://chartink.com/stocks/paperprod.html

On the candle stick charts, the stock is presently trading above its 50 day EMA. It has resistance near its 150 day EMA at 63.40, 200 day EMA at 65.26. RSI is at 50 so far away from overbought levels and CCI at 3.9.

ESSEL PROPACK

http://chartink.com/stocks/esselpack.html Link: http://chartink.com/stocks/esselpack.html

The stock is above all the EMA’s with RSI near its overbought level at 68.33 and CCI at 181.80. This shows strength in the stock.

On the PnF charts the stock is in X column with Resistance at 44-46. Support is at 35.

http://chartink.com/pointfigure/ESSELPACK.html Link: http://chartink.com/pointfigure/ESSELPACK.html

Both these stocks have hardly rewarded its shareholders. It is better to go for good growth stocks at lower levels.

Tony

437

Tony,

Astral story has played out well. Kaveri though it has given an upmove has been due to the fake news more than anything.But still does it constitute a pattern? What is your view on Kaveri?

One more stock in my radar is RS software. Results are to be declared on 18th.With the dollar appreciating to 68 levels and taking an avg of 64-65 for last quarter it should post good results.It has formed a base in the range of 135-140 levels.What do the charts suggest?

438

@Rajarshi,

Most of co’s hedge their positions on forex in advance,hence even if rupee was 64/65,they will not gain,like in case of sonata soft,they inform the shareholders at AGM,that they had hedge their positions for next one year to 56,so till we know the exact positions ,we should not judge on that line.

439

Rajarshi,

True, Astral played out well. Lets see how Kaveri looks on the charts:

KAVERI:

http://chartink.com/stocks/kscl.html

With the false news, the stock got a big leg up.Currently stock is trading above all EMA’s with RSI at 54.65 and CCI at 92.49. Let us see if the stock holds up after the recent bounce.

http://chartink.com/pointfigure/KSCL.html

On the PnF charts, the stock is now on a BUY signal and X column. The next resistance is at 1700. Support exists at 1450. However, if it breaks this support on the down side then next support is only at 1380 and 1260.

R S SOFTWARE:

The stock has been making higher tops and higher bottoms since August, which is a good sign. It is on a BUY signal. Resistance at 145-155. Support at 132-124-122. At 124 it will trade below the Bullish Support Line and hence will become weak.

http://chartink.com/pointfigure/rssoftware.html

On the candle stick charts, the stock is above all its EMA’s which is very good. This shows strength in the stock. RSI is getting closer to overbought levels and CCI is 134 which are all good signs.

Let us see if it breaks on the upside. Watch 145 keenly.

Tony

440

BULLISH PERCENT:

Here is the bullish percent data for the BSE 100 and some other sectors. From a look at it, one can conclude that the Market is in an uptrend. This is not the time to BUY. Personally I will wait for the correction to come. If one buys at current levels, there is no margin of safety. BUY LOW SELL HIGH.

DATE BSE 100 AUTO BANKEX CON.
DURAB		 CAP
GOODS		 FMCG METALS HEALTH I.T
27/09/13 77 90 79 60 50 70 90 71 -
01/10/13 71 82 69 55 40 80 60 65 89
08/10/13 75 91 69 55 55 80 70 76 100

Further the PERCENT of stocks trading above their 50 day EMA in the BSE 100 on 1st October were 54 which have now risen to 88. This indicates the short term rise of the Markets.

The PERCENT of stocks trading above their 150 day EMA in the BSE 100 have risen from 38 to 49 on the above referred dates.

Tony

Note: Anything above 70 is in over bought territory and hence, one should be more vigilant at this stage.