Gold is forming a kind of symmetrical triangle and gave a bullish breakout. Gold will rise around 28k levels and find some resistance. If it manages to go above 29k gold will be on a bull run.
Thursday, May 23, 2013
Monday, May 20, 2013
Sunday, April 28, 2013
Weekly analysis of Sensex: 29th April to 3rd March 2013
The market will looking sluggish this week the resistance of
19712 will be a major resistance for this week the market is expected to
have 18624 as a support at lower side. we
are seeing a negative divergence in in Sensex, this may drive to 18624.
Am I bullish on Sensex?
No, I expect a consolidation. We are seeing a risk building
out in Sensex, as per me this week is the week for profits booking. Most of the
short term players may book profit this week.
How much consolidation is good for Sensex?
18510-18000 need to be the support below which market is not
healthy to grab. If market manages to consolidate below 18000 levels we may see
a free fall upto 17500/16900.
Wednesday, April 24, 2013
Sleeping Triangle: An Research and Findings by Sangamesh.K.S Part 1
Sleeping
Triangles
The name
may be fascinating, interesting, curious sometimes weird. The main myth with
this pattern has stimulated my need towards understanding pattern at a higher
level. When we go into, what is it all
about? How this pattern emerged? We come
to know there are 2 major parts in Sleeping Triangle. One is body
and other is the sleeping body of
the triangle. I call it as real body
and sleeping body.
Real Body
As per my observation the real body will be
lengthiest price action before breakout. The real body get into new resistance.
It will touch the higher price, the price action of the real body will be very
high and sometimes it take a short time duration (it may be formed within
couple of days). As the price action with real body is very high. We normally
tend to see RSI and other Oscillators going to a overbought zone.
Sleeping Body
The
sleeping body is the essential part which differs from a regular triangle. The
price action will never tend touch the support (it will touch only once before
giving a breakout) instead try to be at a higher level but the sentiments of
the market drag the price action lower such that it from a channel. The volume will be much lower compared to
real body.
The price action of the sleeping body can be
seen sticking to the upper level. And show the sentiments to be bullish.
Premature breakouts
Sometimes
we may see the price giving premature breakouts which will say the future
breakout (intension of bullish/bearish breakout) and price action.
Breakout
The
breakout will be formed when the price hit the support and when the support is good
the price rebound which cause a breakout.
*T&C Apply
Strategy: Trading using Sleeping
Triangle
When we
see a bullish breakout it is the only level where we can buy. As the price
level is low it is the best opportunity to buy at a breakout and sell at a
higher high. The triangles need to be traded opposite of a triangle. In the
figure above, we can see a triangle which resembles as a descending
triangle. In a descending triangle we
normally place a stop loss above the trend line but here in this sleeping we
need to place a stop opposite to the descending triangle
Types of Sleeping Triangle
These
triangle are of 2 types namely an
·
Ascending
Sleeping Triangle(Bearish)
·
Descending
Sleeping Triangle(Bullish)
An
example of descending triangle forming in Tata Coffee
Descending Triangle
For More details
Contact
Sangamesh.K.S
8904440661
Tuesday, April 23, 2013
RIL: An Analysis for 25/4/13
After one cycle swing seen in reliance I am looking a
reversal. The stock has a powerful resistance at 850. If it able to cross then
we can see the stock going up to 920.
Indicators: we are seeing a bullish divergence which is
been building from long days. We see
this divergence in MACD. We have even seen a good crossover as most of the stock
has been in a bearish mode. It is been a hotspot for many of the investors.
Fib Levels: As I had told above this stock may find
resistance at 50%. If it manages to cross that level, it will reach to 920. Which
will lead to 920 levels; the stock is looks potential and we may even see the
stock moving more than 940 as the divergence is strong.
Moving Average: I
have been looking for a long time. The stock is more sentimental towards 20 DMA.
After confirmation of a breakout in 20 DMA this stock is found to be bullish.
Friday, April 19, 2013
Sunday, April 14, 2013
A Falling Wedge in Sensex
We
have seen market consolidating, these days. The cocktail of negative news
have driven market near to 18000 levels. Before it reach 18000 we are seeing
falling wedge pattern forming.
A Falling Wedge
A Divergence Building up
Simultaneously, we are seeing a Bullish Divergence forming in market. As we are seeing a gap filling have started up in Sensex. We may see a reversal @18000 level after filling up of gap; which will eventually lead to a bullish breakout in Falling wedge.
Important SAR
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