Disclaimer : These notes/comments have been prepared solely to educate those who are interested in the useful application of Technical Analysis. While due care has been taken in preparing these notes/comments, no responsibility can be or is assumed for any consequences resulting out of acting on them.Trading in Stocks/Commodities/Futures Carry Risk.Consult your financial advisor only before you trade.
KEEP APPROPRIATE STOP LOSSES BASED ON CHARTS WHERE STOPS ARE NOT MENTIONED.
Breaks out of patterns with Opening Gaps can be dealt with only if you are thorough with “Gap Theories”, “Fake outs” etc otherwise strictly avoid them.
NIFTY SPOT
The theory of Andrews Pitchfork says that prices MAY touch the median line before they resume the journey.So I am assuming a test of 6430-6440. It is not a surety that prices will touch there but a probability of approx 60 %.Look at the pink circle. Mind prices can move further down from that point also, but that will be known only after the nature of the test.
Longer term bullish trend is intact as of now.
A “NOTE” ON RECOMMENDATIONS
JUBILANT LIFE SCIENCE
Jubilant went up by more than Rs12 or 8% today.But where did you buy ? At the opening or afterwards ?No doubt where ever one may have bought, one would have ended in profit.But if one does it on other days, he may not end in profit.
I am giving a trade dissection with the Intra 5 minute Charts :
I had warned of opening gaps and this was exactly what happened
Point no 1 Today it opened above yesterday’s high and started to move lower.This is called “Fading the Gap”.Smart money always test the levels.They sell and see if demand is there.If anyone has bought here it was a mistake .He might have been lucky because volume did not pick up on downtrend.
The low volume on downtrend showed that bullishness was intact.
Point no 2 First candle i.e a hammer ( not perfect) appears a sign of bullishness but volumes don’t pick up, so no respite.
Point no 3, Engulfing white candle again giving hope to the bulls.
Point no 4 Another hammer like pattern but no pick up in volumes.
Point no 5 First sign of pickup in Volumes. So one can go long at this point or again after price goes above 142.50
INDIA GLYCOL
This was not a buy since it did not cross 1.5 lac volume which I had stated yesterday.Total volume today was 76000 approx
DevadasNiftyTrader 