Wednesday, April 23, 2014
In my last article I had given my views on sintex and the stock has 56% profit(Click here to read my last article). Now the stock will correct, as the oscillators are giving negative divergence signal. The stock has a resistance at Rs.51-52 and support at Rs.43/Rs.37. Keep looking at the trend-line if there is a dowside breakout the stock will rest till its support.
Sunday, April 20, 2014
From last few days Reliance is a buzz on every investors mouth because the long moving averages have made a bullish crossover. The stock has given a Golden Crossover (bullish cross) which is basically a powerful crossover and well trusted one.
Normally, a stock with golden crossover is expected to be a multi-bagger stock. the short term resistances are 1020/1050/1100/1150. The supports are 920/850 and other multiple supports
Saturday, April 19, 2014
The Technical Indicator MACD say a different story: It is about to give a bearish cross-over. RSI had touched overbought level and now at a neutral zone.
The price recently gave a breakout in 200 day moving average and was not able to sustain the trend and started correcting.
Strategy: As MACD is a Moving Average based indicator and it is worth trading the pattern. currently the support is at 110 and resistance is at 160. Let the correction happen if MACD give a bearish crossover we can wait till 110 and if the stock don't show any reversal and continue to be bearish it is not a worth buy. If it show a reversal and give a conformation by crossing 200 DMA. It is on a bull run.
Tuesday, April 15, 2014
For a few days from now the Idea Cellular was making a bearish divergence on RSI and today it has given a downside breakout. which will lead the stock price to 125 or 101 within next few months. Here in the picture below we can see that the stock has given a downside breakout for the divergence
The possible supports for Idea
When we see at larger picture of Idea cellular we can see that the stock has given a breakout(Downside/ Bearish) and failed to regain the bullish trend. Thus leading the stock into downtrend. Most of all major moving average namely 50DMA, 100DMA, 200DMA have given a negative crossover which is now making this stock a unfavorable piece of stock.