The stock is on a SELL signal but in the X column indicating more buyers than sellers. It made a Double Bottom at 900 and 880 and then gave a SELL signal. It has resistance at 1000 and 1060. Support is at 840 and 800.
On the candle sticks, the CCI is at .2 and rising upwards which is a good sign. RSI is at 39 just above oversold region. The stock has resistance at 925- 930 which will be strong. Once it breaks this, it can touch 1010 levels. Support is at 825 which is very strong.
The stock has been making Lower Tops and Lower Bottoms since June 2014. Currently in the downward trend. It has taken support at the Bullish Support Line (Blue Line). In the X column but on a SELL signal. The next support is at 340 and 310. Below 330, the stock will turn weak as it will trade below the Bullish Support Line. So watch out for this level. Next resistance is at 410-420-460 and 490.
On the candle sticks, the stock has support at 382 and 346. The latter is strong at it is the 200 day EMA. Both the CCI and RSI are trending upwards which is a good sign. It has crossed the 20 day Moving Average between the Bollinger Band and hence can move higher. Resistance will come in at 405.
Dhanuka Agritech (427) has given up all the gains it made since July, 2014.
On the Point and Figure charts the stock is trading at 427, in the X column but on a SELL signal. It has strong support at 400 and then at 360. An extremely strong resistance is at 460. If it manages to break this, then the stock can touch 510 and 540 once again.
On the candle sticks, the stock has resistance at 455 which is the 50 day EMA. This corresponds to 460 on PnF charts referred above. Strong support is at 350. The CCI is at -225 and RSI at 24. Both indicate oversold levels in the stock but have started trending upwards once again. Seems like the fall in the stock has been arrested once again.
Subba, I know your question is directed to Tony but Iâll 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 donât mind me intruding.
Tony, I agree with whatever you said. Self reliance is must.
On another note, do you know of any website that maintains P&F charts of relative strength?
Hi Tony, I totally agree with you. Self reliance is the best. On another note, I wanted to ask you if you have found any good website which has P&F charts for relative strengths of Indian stocks.
The Banking Sector has been the best performer. This is also getting reflected in the prices of individual stocks.
SBI has taken strong support at 2400 where it made a Triple Bottom. Presently in the X column but still on a SELL signal. The stock has resistance at 2600-2700-2800 range. Support is at 2400 and then at 2350 and 1900.
On the candle sticks, the stock has support at 2495 and 2250. The latter support is very strong. Any fall below this should be an exit from the stock. According to Bollinger Bands the stock will trade in the range of 2350 to 2630 range.
There are no sites maintaining Relative Strength charts. In fact I had put in a word to Chart Inks but he is not interested and did not reply to me. At one point of time I did maintain them manually but found the exercise too tedious and time consuming.
Tony
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.
Thanks for your valuable feedback. It is wonderful to get timely response. Many thanks.
If I understand you correctly then may I surmise the following?
If fundamentally I believe in these stocks (my responsibility) then according to you there is a maximum 5% - 7% technical downside possible in most of these banking stocks in normal course of market movements (there may always be black swan events). I am quite OK with that. I have seen quite a free fall in Canara Bank, Oriental Bank and Allahabad Bank during last 30 days with no apparent reason which reminded me to get the technicals checked for these stocks.
Please give your input on Oriental, Andhra and Allahabad (when time permits).
You could find Relative strength charts on Thomas Dorsey Wrightâs website. But the point is that we can access the website only for 21 days beyond that we have to pay for it. But still we can use it for 21 days. I have not gone deep into that, may be Tony can take a look and let us know whether those charts are appropriate
Hi Tony, I totally agree with you. Self reliance is the best. On another note, I wanted to ask you if you have found any good website which has P&F charts for relative strengths of Indian stocks.
Hi Subba,
Thanks for the info. Do they maintain RS charts of all the Indian stocks?
As far as I can recall, I do not think they maintain the Relative Strength Charts.
Tony
Hi Nikhil
You could find Relative strength charts on Thomas Dorsey Wrightâs website. But the point is that we can access the website only for 21 days beyond that we have to pay for it. But still we can use it for 21 days. I have not gone deep into that, may be Tony can take a look and let us know whether those charts are appropriate
Readers will be happy to note that the stock performed in copy book style. It has done all the right things. It did take support at 400 and now looks headed once again towards 540 levels.
Tony
Dear Tony
What is your take on technicals of Dhanuka Agritech.
The stock is still on a Sell signal which is likely to get converted to a BUY signal shortly. It is in X column. The stock made a Double Bottom at 340 and reversed from this support. Broke a strong resistance at 390 on its journey up. Now the next resistance is at 440-490-520-540. Support is at 340 once again.
On the candle sticks, the stock has once again begun trading above the 50 day EMA around 400. It has also crossed the 20 day moving average between the Bollinger Band. It will now have resistance at 488. Both the CCI and RSI have started moving up from oversold levels which is good for the stock. There is every likely hood of the stock moving up from here.
Dhanuka Agritech (427) has given up all the gains it made since July, 2014.
On the Point and Figure charts the stock is trading at 427, in the X column but on a SELL signal. It has strong support at 400 and then at 360. An extremely strong resistance is at 460. If it manages to break this, then the stock can touch 510 and 540 once again.
On the candle sticks, the stock has resistance at 455 which is the 50 day EMA. This corresponds to 460 on PnF charts referred above. Strong support is at 350. The CCI is at -225 and RSI at 24. Both indicate oversold levels in the stock but have started trending upwards once again. Seems like the fall in the stock has been arrested once again.
Thank you for having patience with me. Today I will analyse Oriental Bank.
Oriental Bank (263)
After breaking a strong support at 235, the stock took support at 220 and reversed. It is now in the X column and on a BUY signal after making a Double Top at 245. The next resistance is placed at 290 which is very strong. If it manages to overcome it, then one can expect to see levels of 330 and 370. Support exists at 245 and 220.
On the candle sticks, the stock has just crossed the 50 day EMA. It can now touch 276 before trying to touch 299. Both the CCI and RSI are in positive zone and rising upwards. One can expect the price to move with an upward bias.
After taking support at 62, the stock is now on a BUY signal. It made a triple top at 80 which was a strong resistance. The next resistance is at 82-88 and 92. Again 92 is a strong resistance. Support is at 80 and 62. The best part is that the stock broke the Bullish Support Line and now has move up.
On the candle sticks, the stock is now trading above all Moving Averages which is a positive. It has broken the resistance of the 50 and 200 day EMA which is a big positive. Both the RSI and CCI are in over bought zone and moving up. Ache Din Aaye hein.
The stock was making Lower Tops and Lower Bottoms since June 2014 and made a low of 94. From there the stock has reversed and moved into X column. Made a double top at 104 and moved further up. Still trading below the Bullish Support Line. It has resistance at 114 where it had made a triple bottom earlier. It is also a zone where it will just cross the Bullish Support Line and begin trading above it. Watch 114 carefully. After this is broken the stock will turn stronger. Next resistance is at 118 and 126. Support is at 104-96-94.
On the candle sticks, the stock is doing all the right things. A break out looks imminent. It has begun trading above all the moving averages. Again a good sign. Both CCI and RSI are in over bought zone but trending up. A good sign showing bullishness in the stock.
I would like to know your views on Sintex Industries. My average cost price is 77 and looking to add more as fundamentals are improving. However, want to get a technical perspective on this as well.
Also, could you suggest any books on mere basics of technical analysis? Itâs just to build more conviction in my stock picks and not a primary method of stock selection. For that I stick to fundamentals.If you have anything handy, will get in touch with you over mail as well.
I have never seen you here before. Welcome to Valuepickr. Let me analyse Sintex for you.
Sintex (97)
The stock has made a Bullish pattern in recent months. Looks good on the charts. After making Lower Tops and Bottoms since June 2014, it has reversed since September and started showing more bullishness. Made a double bottom at 74 and reversed from there. Now in the X column on a BUY signal. On itâs journey up made a double top at 82 and 92. Resistance is at 96 where it is currently placed making one more double top. Next resistance is at 102 and 104. Another good feature is that it has broken the Bearish Resistance Line (Red Line) at 84. Support is at 96-92 and 80.
On candle sticks, it is trading above all Moving Averages. The next resistance is at 99 on the upper bollinger bands. The CCI and RSI are in over bought zones and trending up. More higher prices are likely in the near future. With markets on a tear, it is always advisable to stick to stocks which are exhibiting bullish patterns. Sintex is one such stock.
As for books and other help do write to me at ONLYCASTEL@YAHOO DOT COM. All alphabets in small caps. Will surely help you and all other readers here. My primary aim is to educate readers in Technical Analysis and make it simple and easy to understand.
