Have been doing some study recently on few Technical Indicators like CCI, MACD and MFI. Applying these might be useful to identify good entry points.
Based on my understanding, Indag Rubber seems to be moving towards a sweet-spot according to all these three indicators:
CCI : Almost into positive territory (-0.54 as of Friday). Positive move can be confirmed once CCI moves above 100
MACD : MACD line (-1.45) is about to cross the signal line (-1.04) from below. A positive MACD line trending above signal line is a confirmation for upward move.
MFI : MFI (66) is trending upwards. MFI value above 20 and trending upwards is considered as an indication of positive buying interest in the stock.
Disclaimers:
1). I am still learning the intricacies of Technical Analysis, so my assumptions could be wrong.
2). 2% of my portfolio is already invested in Indag Rubber.
According to charts in Point and Figure analysis which I follow, there is a strong support at 250-55. The stock is in a sell signal and has to reverse in the X column. The next resistance is 265 and then 285 and 305. After which it can once again test its high of 325.
See chart here:
Indag Rubber is a stock to watch in the coming days. And why so?
As per candle stick charts this is what happened:
http://chartink.com/stocks/509162.html
The one week moving average has cut the five week moving average from below. This shows that the stock has gained momentum and one can see a good upside.
Let us see what happened today:
http://chartink.com/pointfigure/509162.html
One can see that the stock has been trading above the Bullish Support Line ( see line in blue). This shows the trend of the stock is up. The stock made a double bottom at 265 ( see two “O” s and then a triple top at 285 ( see three “X” s). Once the stock breaks 285 then the next resistance is at 320 where it will make another double top. Thereafter it will be in new territory for another new high.
Isn’t Point and Chart very simple to understand?
X represents buyers and hence demand
O represents sellers and hence supply.
Applying simple economics when demand exceeds supply the price rises and vice versa. If you do need any clarification please do write in to me.
