Readers of my column here, must have noticed, the emphasis I have been placing on the understanding of CCI. To make things simple, I have given below the relationship of CCI to the Price of a stock. Note when the CCI of Astral Poly rose from 135 to 432, the Price of Astral rose from 277 to 330. It made a high of 340 and has started reversing after CCI fell from 432 to 276. Presently the price is 316.
ASTRAL POLY
14-Dec
16-Dec
17-Dec
18-Dec
19-Dec
CCI
135
205
228
432
276
PRICE
277
284
295
330
316
One more example:
CERA SANITARY
CCI
125
170
221
245
273
PRICE
633
654
678
702
724
Looking forward to your feed back. I get a lot of queries, but very few give a feed back about the analysis of the stock I make. I do not know if the analysis has benefited the reader. Do write in so that we can make this discussion more interesting and beneficial to all.
The stock took support at 190 and reversed once again to the X column. It has resistance at 220. Support is at 190-180. The stock is also trading above both the Bullish Support Line and Bearish Resistance Line.
On the candle sticks, the stock is trading just below the 5 day EMA but above all the other EMA’s. It has support at 192-184-174. The RSI is at 53, CCI at 29 and Momentum at 0.5. It will take some time for the stock to resume its upward journey and may trade between 190-215 zone.
Since September 2013, this stock has been making Higher Tops and Higher Bottoms. This is a sign of bullishness. The stock is in the X column and on a BUY signal. It is also trading above the BULLISH SUPPORT LINE. It gave a BUY signal at 250 and touched 255. It has pulled back a little and taking support at 245 where it made a double top. Support exists at 245-215 and 200. With strong support, it can surely cross 255. A good stock to own fundamentally too.
On the candle stick the short term momentum has changed slightly with CCI falling from 267 to 221. The RSI is in overbought territory too at 72 and moving downwards.Can expect a slight correction which can be a buying opportunity. It has support at 246-229-210-164.
What I understand from this wikipedia pagehttp://en.wikipedia.org/wiki/Commodity_channel_index Link: http://en.wikipedia.org/wiki/Commodity_channel_index is that when the CCI moves above +100, a security is considered to be entering into a strong uptrend and a buy signal is given.An advance above a100 and trend line breakout could be considered bullish. From overbought levels, a decline below +100 and a trend line break could be considered bearish.
Is it safe to assume when the cci starts falling everyday that stock is in a downtrend or that assumption only holds true when it falls below 100 ?
Pls correct me where ever I have faltered in my understanding
Nice of you to write a query to me for the first time. A warm welcome to Valuepickr.
PAPER PRODUCTS (73)
This stock hardly does anything. The management is not shareholder friendly. If you have got it at lower levels, then you are lucky or else your returns will be hardly anything. The company is a great company though. The stock for the last year has been trading between 57 and 82 zone.
On Point and Figure, the stock made a Triple Top at 68 and currently is on a BUY signal. It has resistance at 74-82. Support is at 68 and 62. Below 62 it will turn weak trading below the Bullish Support Line.
On candle sticks, the stock is trading above all the EMA’s. It has support at 71-68-66-65. RSI is at 78 and in overbought zone and CCI at 203 again in overbought zone. Momentum is 8, all this indicating that in the short term, the momentum for the stock is UP.
You are right the stock started moving since September 2013.
SYMPHONY (424)
After making a Double Top at 390, the stock gave a BUY signal at 400. It made a high of 440 and then took a breather consolidating once again. On PnF charts, it has resistance at 470. Support is at 410-390-350.
On the charts you will have noticed that the stock after making Lower Tops and Lower Bottoms since October 2012, has once again started making Higher Tops and Higher Bottoms since September 2013. This is a good sign showing that the correction is over.
On candle sticks, the stock has support at 422-409-388 and 354. The RSI is 62, CCI 44 and Momentum 15. The short term indicators have just started moving upwards. Looks like it can touch 470 once again.
[quote="jaunty, post:626, topic:996262942"]
> Readers of my column here, must have noticed, the emphasis I have been placing on the understanding of CCI. To make things simple, I have given below the relationship of CCI to the Price of a stock. Note when the CCI of Astral Poly rose from 135 to 432, the Price of Astral rose from 277 to 330. It made a high of 340 and has started reversing after CCI fell from 432 to 276. Presently the price is 316.
>
> One more example:
>
> Looking forward to your feed back. I get a lot of queries, but very few give a feed back about the analysis of the stock I make. I do not know if the analysis has benefited the reader. Do write in so that we can make this discussion more interesting and beneficial to all.
[/quote]
Hi Sourabh,
I have a word document explaining CCI. If any one can help me put it up for the readers, it will be a great pleasure to share it with all. The size exceeds 100 KB and hence cannot upload it here.
Sourabh you can give me your email id and i will send it to you.
Tony
Hi tony ,
What I understand from this wikipedia pagehttp://en.wikipedia.org/wiki/Commodity_channel_index Link: http://en.wikipedia.org/wiki/Commodity_channel_index is that when the CCI moves above +100, a security is considered to be entering into a strong uptrend and a buy signal is given.An advance above â100 and trend line breakout could be considered bullish. From overbought levels, a decline below +100 and a trend line break could be considered bearish.
Is it safe to assume when the cci starts falling everyday that stock is in a downtrend or that assumption only holds true when it falls below 100 ?
Pls correct me where ever I have faltered in my understanding
Coould you provide your TA on Shilpa? As I can see that the delivery volumes have been very good for the last 3 weeks and it has nicely been consolidating in the range of 265-270 levels. Personally I have deployed 50% of the toatl cash that I had intended to deploy in Shilpa at 265 levels and hence I hold a high conviction.
On the PnF charts the stock is in the X column. It made a DOUBLE TOP at 1340 and went on to touch 1468. It is now on a BUY SIGNAL. The next resistance for the stock is 1550 the earlier high. Support is at 1400-1380-1340.
On the candle sticks, the RSI-86, CCI-405, Momentum-224 are all in positive territory. They are all in overbought region. With the current strength in the stock it can take out 1550. Supports are at 1380-1279-1245-1217.
Welcome to Valueepickr. Nice to see you for the first time. Do come regularly with your queries.
MIRZA (23.35)
The stock took support at the 200 day EMA and bounced back. It has strong support at 22. These are the readings on the candle stick. The RSI is at 43 and CCI at 20. The stock has to gain more momentum to cross the earlier highs. It is just recovering from the oversold region.
On the PnF charts, the stock is in the X column showing more buyers, though on a SELL signal. It has resistance at 25- 25.50- 26- 26.50. Support exists at 22- 20.
On the candle sticks, the stock has support at 57 and resistance at 62. The RSI is at 54 and CCI at 91.Momentum at 3. Looks like the stock is readying itself for a break out. Watch CCI. Once it crosses 100 then one can expect a breakout above 62.
On PnF charts, the stock is in X column though on a SELL signal. It has resistance at 62-68. Supports are at 53-52.
You surely have very high conviction in the stock to deploy so much funds.
Shilpa (266)
On the candle sticks, the stock has supports at 260-243-204. Currently it is trading below the 5 day EMA. The RSI is 39, CCI 2 and Momentum at -3. The stock is on a pull back after making a high of 285. The short term momentum is down.
On PnF charts, the stock is in O column though on a BUY signal. After breaking the strong resistance at 215 the stock touched 285. It now has strong support at 215 once again.
