After giving a SELL signal at 245 and 235, the stock reversed and is on a come back, currently in X column. Resistance is at 275 and if it breaks this with good volumes, then it can touch 285 and thereafter make a new high.
On the candle stick one can observe that the 5 day EMA cut the 25 day EMA from below and the stock began to rally. It touched 280 once again from the earlier level of 253. Now the stock has supports at 263 and 256 in the short term. RSI is at 79 in overbought zone and CCI at 187 which shows there is short term momentum in the stock. All in all a good sign for the stock.
The stock is in the X column and on a BUY signal. It is trading above the Bullish Support Line and the Bearish Resistance Line. A very strong stock and should be bought on dips. It has resistance at 220 and thereafter can make a new high. Support is at 200 where it will make a Triple Bottom.
These technical indicators work well when stocks are range boundā¦ In stocks where there is clear trend at work, one doesnt need to worry too much about short term blips or correctionsā¦ In fact they may be used to add to the positions.
Since there is a clear saucer pattern and stock has been posting frequent new highs, its in a strong bull grip and so enjoy the rideā¦ It will show overbought indicators off and on but after sideways or very minor corrections, it will ultimately go up.
Technical indicators are good supportive parametersā¦ But main thing is identifying trend and riding it all the way.
The RSI is close to the overbought levels and CCi although at 180 has started falling. The stock is corrected and on a pull back. It has support at 197-186 in the short run and 176-169 in the long run.
After touching 220 the stock reversed in the O column. It is still on a BUY signal. Support exists at 190-180. If it trades below 180, then it will turn weak once again as it will be trading below the Bearish Resistance Line (in red) and below the Triple Top which it made earlier at 180.
You have rightly said that technically one should SELL Repco as the RSI and CCI are in overbought regions. Before initiating a BUY or a SELL, one should ask oneself are you a TRADER or an INVESTOR. Short term corrections in a stock are bound to happen. If you are a Trader then you can initiate a SELL or else wait for the correction to happen and BUY into the stock if the fundamentals are intact.
In fact, I wait for such corrections so that i get a good entry point in the stock as I am an investor. Such corrections are good for the stock because more stronger hands enter the fray and leads the stock to new highs. This leads to Higher Tops and Higher Bottoms on the charts.
Watch out for supports at 290-280 275 and 260 to BUY more into the stock if you are an investor.
As per Point and Figure charting, one uses a Price Objective whenever a stock makes a new high to understand how far the stock can go from here. However, these are only estimates and it is not necessary that the price should touch the Price Objective.
As per my calculations, the Price Objective of Poly Medicare is 500 and that of Shilpa 510.
For more on this, please read this article which is very informative:
I have a query regarding Dena bank.I saw the candle stick chart of Dena bank .According to charts there is buy signal starts from 2/12/13.now stock will rise but still cant find the chart is strong.Please guide me If i am right.Or till when stock should be hold to make profits. bought is at 61.
I am stucked in Orbit Corporation.I studied charts also but am not understanding the CS and PnF charts.So I request you to tell us about Orbit future.Or you can mail me at Mamtajain1@yahoo.com
On the candle chart, the stock is consolidating around 15 for the last two months. The 5 day, 25 day and 50 day EMAās are around 15 to 15.70. The stock has a strong resistance around 19.61 where the 200 day EMA exists. The RSI is at 49, and CCI - 42. Unless the CCI moves to 100, the stock will not do much but continue trading at similar levels.
Also if you look at the Point and Figure charts, you will note that in December 2012, the stock had made a high of 62. Since then the stock has been making Lower Tops (LT)and Lower Bottoms. In January the LT was 59, Feb 46, Mar. 37, Apr. 28, May 24 and so forth. Such stocks are weak stocks and should be avoided at all costs.
The stock is currently in the O column though on a BUY signal indicating more sellers than buyers. Support is at 14.50.This is a very strong support as it had made a Triple Top and will make a Double Bottom at this level. Next support comes at 13.
The stock is in the X column but on a SELL signal. Resistance is at 58 and then 64. Support exists at 53-52. Below 52 the stock will turn weak as it will be trading below the Bullish Support Line marked in blue. Thereafter it can fall all the way to 49.
Your correct entry level should have been 54-55 on a PULL BACK.
The stock is currently trading above the 5 day, 25 day, 50 day EMA. The stock will meet strong resistance at 70 the 200 day EMA. The RSI is at 46 and CCI at 13.28. It is trending up. Watch for CCI to touch 100 and you will get a good break out. Let us see if the Election Results are positive for markets. If that is so, one can expect a good bounce.
To a query from Jatin, I had written earlier that Cera will make a break out above 620. Those who own this share or are tracking it closely, would have noticed that Cera indeed made a breakout and touched a high of 649 yesterday. Now both the RSI and the CCI are in overbought zone. Time to sit back and wait for a correction to enter the stock once again.
Keep a look out for La Opala and Shriram Transport. Both are readying themselves for a break out as per reading of CCI. Shriram Transport CCI is at 140 and that of La Opala at 85.
Today I had mentioned that Cera Sanitary is in overbought zone. The stock did correct and close at 628.
Also those following La Opala must have seen a huge break out. I had written that the CCI was at 85 and a break out was imminent. And what a break out the stock gave today. It touched a high of 645.
Shriram Transport stayed put. Kaveri Seed is now likely to touch 1700 if it breaks resistance of 1650. The 5 day EMA crossed the 25 day EMA from below and the stock started its upward journey. CCI too has crossed 100. The momentum for this stock is on the upside.
One can see Yes Bank correct a little more tomorrow. May touch 363 where it will find support.
I had written the below mentioned post. Lets start an analysis of each point mentioned below starting with Markets.
MARKETS:
The first thing one has to see while buying any stocks is the Markets. How does one do that? Here comes the advantage of BULLISH PERCENT.
The Bullish Percent tells us which are the stocks on a BUY SIGNAL. Here I use the BSE 100. This gives me a universe of 100 stocks making the analysis more stable and not biased.
Currently the Bullish Percent reading indicates that out of 100 stocks in the BSE 100,78 stocks are on a BUY SIGNAL. That is a Bullish sign. However, while understanding Bullish Percent Charts one has to remember that any area above 70 or more is the OVERBOUGHT ZONE and any area below 30 is the OVERSOLD ZONE. It is in these zones that one has to get alert and be ready to look out for signs of change in sentiments.
A contrarian investor will always do the opposite. He/She will BUY when stocks are OVERSOLD and SELL when stocks are OVERBOUGHT.
I have put up details earlier in this thread, about the BULLISH PERCENT. On August 2, it reached a level of 31, indicating that only 31 stocks in the universe of 100 were on a BUY signal. This was the time to enter the market. Those who did this must have reaped the benefit today. Thereafter the Bullish Percent rose to 80, on September 20 just in a matter of a month.
So according to Bullish Percent, one should not enter the Market now as it is in Overbought zone. One should wait and watch and look for opportunities to realign oneās portfolio and get out of dud stocks. Spend time reading the various threads on Valuepickr where you will get the best and unbiased advice. Make a list of the stocks one should own and wait for the opportune time to make your entry.
For calculation RSI what is duration to be considered?
I had written the below mentioned post. Lets start an analysis of each point mentioned below starting with Markets.
MARKETS:
The first thing one has to see while buying any stocks is the Markets. How does one do that? Here comes the advantage of BULLISH PERCENT.
The Bullish Percent tells us which are the stocks on a BUY SIGNAL. Here I use the BSE 100. This gives me a universe of 100 stocks making the analysis more stable and not biased.
Currently the Bullish Percent reading indicates that out of 100 stocks in the BSE 100,78 stocks are on a BUY SIGNAL. That is a Bullish sign. However, while understanding Bullish Percent Charts one has to remember that any area above 70 or more is the OVERBOUGHT ZONE and any area below 30 is the OVERSOLD ZONE. It is in these zones that one has to get alert and be ready to look out for signs of change in sentiments.
A contrarian investor will always do the opposite. He/She will BUY when stocks are OVERSOLD and SELL when stocks are OVERBOUGHT.
I have put up details earlier in this thread, about the BULLISH PERCENT. On August 2, it reached a level of 31, indicating that only 31 stocks in the universe of 100 were on a BUY signal. This was the time to enter the market. Those who did this must have reaped the benefit today. Thereafter the Bullish Percent rose to 80, on September 20 just in a matter of a month.
So according to Bullish Percent, one should not enter the Market now as it is in Overbought zone. One should wait and watch and look for opportunities to realign oneās portfolio and get out of dud stocks. Spend time reading the various threads on Valuepickr where you will get the best and unbiased advice. Make a list of the stocks one should own and wait for the opportune time to make your entry.
